Akamai Technologies (AKAM) Stock Moves -0.49%: What You Should Know
In the latest trading session, Akamai Technologies (AKAM) closed at $116.31, marking a -0.49% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.8%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
The the stock of cloud services provider has risen by 1.09% in the past month, lagging the Computer and Technology sector's gain of 2.11% and the S&P 500's gain of 3.4%.
The investment community will be paying close attention to the earnings performance of Akamai Technologies in its upcoming release. On that day, Akamai Technologies is projected to report earnings of $1.59 per share, which would represent year-over-year growth of 16.06%. Alongside, our most recent consensus estimate is anticipating revenue of $996.99 million, indicating a 7.46% upward movement from the same quarter last year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Akamai Technologies holds a Zacks Rank of #3 (Hold).
In the context of valuation, Akamai Technologies is at present trading with a Forward P/E ratio of 17.41. This signifies a discount in comparison to the average Forward P/E of 24.03 for its industry.
We can additionally observe that AKAM currently boasts a PEG ratio of 1.79. 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 2.04 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 44, finds itself in the top 18% 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.
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
