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Fastly (FSLY) Gains But Lags Market: What You Should Know

Zacks Equity Research
·2 mins read

Fastly (FSLY) closed at $95.91 in the latest trading session, marking a +0.6% move from the prior day. The stock lagged the S&P 500's daily gain of 1.8%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 2.33%.

Heading into today, shares of the cloud software developer had gained 16.7% over the past month, outpacing the Computer and Technology sector's loss of 9.14% and the S&P 500's loss of 6.31% in that time.

FSLY will be looking to display strength as it nears its next earnings release. In that report, analysts expect FSLY to post earnings of $0 per share. This would mark year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.92 million, up 50.44% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.03 per share and revenue of $299.75 million, which would represent changes of +94.23% and +49.53%, respectively, from the prior year.

Any recent changes to analyst estimates for FSLY should also be noted by investors. Recent revisions tend to reflect the latest 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 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FSLY is currently a Zacks Rank #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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Zacks Investment Research