Limelight Networks (LLNW - Free Report) closed the most recent trading day at $5.98, moving -0.99% from the previous trading session. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the network services company had gained 3.25% over the past month. This has lagged the Computer and Technology sector's gain of 4.31% and outpaced the S&P 500's gain of 2.55% in that time.
LLNW will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2020. The company is expected to report EPS of $0.02, up 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $58.81 million, up 14.6% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.08 per share and revenue of $237 million. These totals would mark changes of +500% and +18.13%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for LLNW. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 4.08% higher. LLNW is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, LLNW is holding a Forward P/E ratio of 76.87. This valuation marks a premium compared to its industry's average Forward P/E of 38.64.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
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.
To follow LLNW in the coming trading sessions, be sure to utilize Zacks.com.