Latest news with #contentdelivery
Yahoo
3 days ago
- Business
- Yahoo
Is Trending Stock Cloudflare, Inc. (NET) a Buy Now?
Cloudflare (NET) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this web security and content delivery company have returned +2.2%, compared to the Zacks S&P 500 composite's +3.3% change. During this period, the Zacks Internet - Software industry, which Cloudflare falls in, has gained 6.1%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Cloudflare is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +15%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. For the current fiscal year, the consensus earnings estimate of $0.84 points to a change of +12% from the prior year. Over the last 30 days, this estimate has changed -9.1%. For the next fiscal year, the consensus earnings estimate of $1.09 indicates a change of +29.4% from what Cloudflare is expected to report a year ago. Over the past month, the estimate has changed +4.8%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cloudflare is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Cloudflare, the consensus sales estimate for the current quarter of $544.06 million indicates a year-over-year change of +26.5%. For the current and next fiscal years, $2.11 billion and $2.66 billion estimates indicate +26.7% and +25.7% changes, respectively. Last Reported Results and Surprise History Cloudflare reported revenues of $512.32 million in the last reported quarter, representing a year-over-year change of +27.8%. EPS of $0.21 for the same period compares with $0.2 a year ago. Compared to the Zacks Consensus Estimate of $500.72 million, the reported revenues represent a surprise of +2.32%. The EPS surprise was +16.67%. Over the last four quarters, Cloudflare surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Cloudflare is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Cloudflare. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cloudflare, Inc. (NET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
28-06-2025
- Business
- Yahoo
Keybanc Initiates Akamai (AKAM) With An Underweight Rating
Akamai Technologies, Inc. (NASDAQ:AKAM) is one of . KeyBanc Capital Markets has initiated coverage of Akamai Technologies, Inc. (NASDAQ:AKAM) with an Underweight rating and a price target of $63, signaling a cautious stance on the cloud and content delivery network provider. In a note to investors, the firm acknowledged that Akamai's shares are not currently overvalued, but expressed concern over the potential for downside risks in the coming quarters. A close-up of a person using a laptop with cloud solutions in the background. The analyst noted that Akamai operates in an increasingly competitive environment, where pricing pressures and market saturation could weigh on growth. While the company remains a well-established player in edge computing and security, the firm believes the broader landscape lacks clear near-term catalysts that would drive meaningful upside for the stock. KeyBanc pointed to recent trends in the industry that suggest more potential for pricing disappointments rather than unexpected improvements. As demand patterns normalize following pandemic-era spikes, and as more players enter the space, maintaining premium pricing and defending market share may prove challenging for Akamai Technologies, Inc. (NASDAQ:AKAM). The initiation reflects a more conservative view on Akamai's performance relative to peers in the infrastructure and cybersecurity segments. Despite ongoing investments in its cloud platform and security services, KeyBanc believes the company may face headwinds that limit valuation expansion in the near future. The firm recommends a cautious approach amid mixed industry signals. While we acknowledge the potential of AKAM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AKAM and that has 100x upside potential, check out our report about this cheapest AI NEXT: 10 Best Small Cap Tech Stocks With Biggest Upside Potential and 7 Most Popular AI Penny Stocks Under $5 To Avoid. Disclosure: None. Sign in to access your portfolio
Yahoo
16-06-2025
- Business
- Yahoo
Cloudflare, Inc. (NET) is Attracting Investor Attention: Here is What You Should Know
Cloudflare (NET) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this web security and content delivery company have returned +9.4% over the past month versus the Zacks S&P 500 composite's +1.7% change. The Zacks Internet - Software industry, to which Cloudflare belongs, has gained 3.6% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Cloudflare is expected to post earnings of $0.18 per share for the current quarter, representing a year-over-year change of -10%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.2%. For the current fiscal year, the consensus earnings estimate of $0.79 points to a change of +5.3%. from the prior year. Over the last 30 days, this estimate has changed -2.1%. For the next fiscal year, the consensus earnings estimate of $1.04 indicates a change of +31.6% from what Cloudflare is expected to report a year ago. Over the past month, the estimate has remained unchanged. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cloudflare. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Cloudflare, the consensus sales estimate for the current quarter of $500.72 million indicates a year-over-year change of +24.9%. For the current and next fiscal years, $2.09 billion and $2.64 billion estimates indicate +25.4% and +26.1% changes, respectively. Cloudflare reported revenues of $479.09 million in the last reported quarter, representing a year-over-year change of +26.5%. EPS of $0.16 for the same period compares with $0.16 a year ago. Compared to the Zacks Consensus Estimate of $468.74 million, the reported revenues represent a surprise of +2.21%. The EPS surprise was 0%. Over the last four quarters, Cloudflare surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Cloudflare is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Cloudflare. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cloudflare, Inc. (NET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
