Limelight Networks (LLNW) Dips More Than Broader Markets: What You Should Know
Limelight Networks (LLNW) closed at $4.19 in the latest trading session, marking a -1.41% move from the prior day. This move lagged the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the network services company had lost 0.23% over the past month. This has lagged the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 3.21% in that time.
LLNW will be looking to display strength as it nears its next earnings release. On that day, LLNW is projected to report earnings of $0.02 per share, which would represent a year-over-year decline of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $62.05 million, up 3.19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.04 per share and revenue of $236.85 million, which would represent changes of +300% and +18.05%, respectively, from the prior year.
Any recent changes to analyst estimates for LLNW should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. LLNW is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, LLNW is holding a Forward P/E ratio of 121.43. For comparison, its industry has an average Forward P/E of 30.71, which means LLNW is trading at a premium to the group.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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