Akamai Technologies (AKAM) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Akamai Technologies (AKAM) closed at $119.33, marking a +1.38% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.88%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.35%.
Heading into today, shares of the cloud services provider had lost 1.38% over the past month, lagging the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 0.64% in that time.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on February 13, 2024. It is anticipated that the company will report an EPS of $1.59, marking a 16.06% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $997.61 million, up 7.53% from the year-ago period.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Akamai Technologies is currently being traded at a Forward P/E ratio of 17.46. This represents a discount compared to its industry's average Forward P/E of 24.93.
Meanwhile, AKAM's PEG ratio is currently 1.8. 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 Internet - Services industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
