NET earlier scored a nearly three-year high
Cloudflare Inc (NYSE:NET) shares are up 0.7% to trade at $195.32, and earlier surged to a more than three-year high of $196.20, with support from their 20-day moving average. The cybersecurity stock is pacing for a sixth-straight gain and now sports a 135.7% year-over-year lead, with a 81.4% lead amassed so far in 2025. This rally is showing no signs of slowing down, either, thanks to a historically bullish signal now flashing.
Digging deeper, Cloudflare stock's recent peak comes amid low implied volatility (IV), per its Schaeffer's Volatility Index (SVI) of 37%, which sits in the 15th percentile of its annual range. This has occurred five other times over the past five years, after which the equity was higher one month later 80% of the time, with a 11.3% pop. From its current perch, a similar move would place FIVE back above $217 for the first time since 2021.
While the majority of analysts are already bullish on NET, there is still pessimism left to unwind. Of the 31 firms in coverage, 13 carry a tepid "hold" or worse rating. In addition, the 12-month consensus target price of $159.83 is an 18.1% discount to current levels, leaving ample room for price-target hikes.
Those looking to cash in on NET's potential run higher should consider options. This is per the security's Schaeffer’s Volatility Scorecard (SVS), which ranks high at 80 out of 100, which means it has tended to exceed volatility expectations over the past year -- a boon for options buyers.