Akamai Technologies (AKAM) Rises But Trails Market: What Investors Should Know
In the latest trading session, Akamai Technologies (AKAM) closed at $102.57, marking a +0.55% move from the previous day. This change lagged the S&P 500's 1.2% gain on the day. Meanwhile, the Dow experienced a rise of 1.58%, and the technology-dominated Nasdaq saw an increase of 1.16%.
Shares of the cloud services provider have depreciated by 4.25% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.32% and the S&P 500's loss of 3.58%.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. The company is scheduled to release its earnings on November 7, 2023. On that day, Akamai Technologies is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 19.84%. Meanwhile, our latest consensus estimate is calling for revenue of $944.57 million, up 7.11% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and revenue of $3.78 billion, which would represent changes of +10.43% and +4.57%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 0.18% lower. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 17.2. This expresses a discount compared to the average Forward P/E of 21.58 of its industry.
Investors should also note that AKAM has a PEG ratio of 1.77 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.77.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 70, this industry ranks in the top 28% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
