Akamai Technologies (AKAM) Gains As Market Dips: What You Should Know
In the latest trading session, Akamai Technologies (AKAM) closed at $124.61, marking a +0.16% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.
The cloud services provider's stock has climbed by 8.82% in the past month, falling short of the Computer and Technology sector's gain of 9.33% and outpacing the S&P 500's gain of 4.59%.
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. The company's upcoming EPS is projected at $1.59, signifying a 16.06% increase compared to the same quarter of the previous 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. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Akamai Technologies presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Akamai Technologies is presently trading at a Forward P/E ratio of 18.56. This valuation marks a discount compared to its industry's average Forward P/E of 23.78.
Investors should also note that AKAM has a PEG ratio of 2.34 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 2.51.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 115, finds itself in the top 46% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
