Akamai Technologies (AKAM) Ascends While Market Falls: Some Facts to Note
Akamai Technologies (AKAM) closed at $124.66 in the latest trading session, marking a +0.1% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.76%.
Heading into today, shares of the cloud services provider had gained 5.22% over the past month, lagging the Computer and Technology sector's gain of 6.36% and outpacing the S&P 500's gain of 3.36% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. The company's earnings report is set to go public on February 13, 2024. The company's earnings per share (EPS) are projected to be $1.59, reflecting a 16.06% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $997.61 million, up 7.53% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% higher. Akamai Technologies is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Akamai Technologies is at present trading with a Forward P/E ratio of 18.58. This denotes a discount relative to the industry's average Forward P/E of 24.1.
We can also see that AKAM currently has a PEG ratio of 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 2.51 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
