Akamai Technologies (AKAM) Advances But Underperforms Market: Key Facts
Akamai Technologies (AKAM) closed the latest trading day at $119.02, indicating a +0.02% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.04%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.03%.
The the stock of cloud services provider has risen by 2.85% in the past month, lagging the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28%.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. In that report, analysts expect Akamai Technologies to post earnings of $1.59 per share. This would mark year-over-year growth of 16.06%. Simultaneously, our latest consensus estimate expects the revenue to be $996.99 million, showing a 7.46% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.08 per share and revenue of $3.81 billion, indicating changes of +13.22% and +5.45%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Akamai Technologies presently features a Zacks Rank of #3 (Hold).
Investors should also note Akamai Technologies's current valuation metrics, including its Forward P/E ratio of 19.56. This expresses a discount compared to the average Forward P/E of 27.93 of its industry.
We can additionally observe that AKAM currently boasts a PEG ratio of 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AKAM's industry had an average PEG ratio of 2.44 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 36, positioning it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
