What Are Analysts Saying About Akamai Technologies, Inc.'s (NASDAQ:AKAM) Growth?
Since Akamai Technologies, Inc. (NASDAQ:AKAM) released its earnings in March 2019, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 24% in the upcoming year relative to the past 5-year average growth rate of -5.1%. Presently, with latest-twelve-month earnings at US$298m, we should see this growing to US$369m by 2020. Below is a brief commentary on the longer term outlook the market has for Akamai Technologies. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Akamai Technologies
How is Akamai Technologies going to perform in the near future?
Longer term expectations from the 22 analysts covering AKAM’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for AKAM, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 13% based on the most recent earnings level of US$298m to the final forecast of US$475m by 2022. EPS reaches $3.63 in the final year of forecast compared to the current $1.78 EPS today. With a current profit margin of 11%, this movement will result in a margin of 14% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Akamai Technologies, I've compiled three essential factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Akamai Technologies worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Akamai Technologies is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Akamai Technologies? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
