Cloudflare(US:NET) ZACKSยท2025-07-22 23:01Company Performance - Cloudflare's stock closed at $190.55, down 3.65% from the previous session, underperforming the S&P 500's gain of 0.06% [1] - Over the past month, Cloudflare shares increased by 7.55%, lagging behind the Computer and Technology sector's gain of 9.6% but outperforming the S&P 500's gain of 5.88% [1] Upcoming Earnings Report - Cloudflare is set to release its earnings on July 31, 2025, with an expected EPS of $0.18, reflecting a 10% decrease from the prior-year quarter [2] - The consensus estimate for quarterly revenue is $500.72 million, which represents a 24.87% increase from the same period last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $0.79 per share, with revenue expected to reach $2.09 billion, indicating increases of 5.33% and 25.38% respectively from the prior year [3] Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for Cloudflare are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Cloudflare as 5 (Strong Sell), suggesting a negative sentiment among analysts [6] Valuation Metrics - Cloudflare's Forward P/E ratio stands at 249.6, significantly higher than the industry average of 29.18 [6] - The company has a PEG ratio of 10.15, compared to the Internet - Software industry's average PEG ratio of 2.18 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 77, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the importance of industry strength in investment decisions [8]