Akamai Technologies (AKAM) Registers a Bigger Fall Than the Market: Important Facts to Note
Akamai Technologies (AKAM) closed the most recent trading day at $115.70, moving -0.25% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.09%.
Heading into today, shares of the cloud services provider had gained 1.11% over the past month, lagging the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5% in that time.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company is expected to report EPS of $1.59, up 16.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $996.99 million, up 7.46% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Currently, Akamai Technologies is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Akamai Technologies is currently trading at a Forward P/E ratio of 17.22. This expresses a discount compared to the average Forward P/E of 23.86 of its industry.
It is also worth noting that AKAM currently has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry currently had an average PEG ratio of 1.99 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting 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.
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
