Akamai Technologies (AKAM) Exceeds Market Returns: Some Facts to Consider
The latest trading session saw Akamai Technologies (AKAM) ending at $123.76, denoting a +0.43% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq appreciated by 0.36%.
Shares of the cloud services provider witnessed a gain of 3.14% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.29% and outperforming the S&P 500's gain of 2.4%.
The investment community will be paying close attention to the earnings performance of Akamai Technologies in its upcoming release. The company is slated to reveal its earnings 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, the Zacks Consensus Estimate for revenue is projecting net sales of $997.61 million, up 7.53% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 0.09% higher. Akamai Technologies is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Akamai Technologies is currently exchanging hands at a Forward P/E ratio of 18.28. This valuation marks a discount compared to its industry's average Forward P/E of 25.98.
Meanwhile, AKAM's PEG ratio is currently 1.88. 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. The average PEG ratio for the Internet - Services industry stood at 2.34 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 106, positioning it in the top 43% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
