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Akamai Technologies (AKAM) Gains But Lags Market: What You Should Know
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Akamai Technologies (AKAM - Free Report) closed at $91.03 in the latest trading session, marking a +0.1% move from the prior day. The stock lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the cloud services provider had lost 0.9% over the past month, lagging the Computer and Technology sector's gain of 2.44% and the S&P 500's gain of 3.34% in that time.
Akamai Technologies will be looking to display strength as it nears its next earnings release. On that day, Akamai Technologies is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 4.44%. Meanwhile, our latest consensus estimate is calling for revenue of $931.62 million, up 3.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.77 per share and revenue of $3.76 billion. These totals would mark changes of +7.45% and +4.08%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Akamai Technologies is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 15.77. For comparison, its industry has an average Forward P/E of 31, which means Akamai Technologies is trading at a discount to the group.
Investors should also note that AKAM has a PEG ratio of 1.58 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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 AKAM in the coming trading sessions, be sure to utilize Zacks.com.
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Akamai Technologies (AKAM) Gains But Lags Market: What You Should Know
Akamai Technologies (AKAM - Free Report) closed at $91.03 in the latest trading session, marking a +0.1% move from the prior day. The stock lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the cloud services provider had lost 0.9% over the past month, lagging the Computer and Technology sector's gain of 2.44% and the S&P 500's gain of 3.34% in that time.
Akamai Technologies will be looking to display strength as it nears its next earnings release. On that day, Akamai Technologies is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 4.44%. Meanwhile, our latest consensus estimate is calling for revenue of $931.62 million, up 3.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.77 per share and revenue of $3.76 billion. These totals would mark changes of +7.45% and +4.08%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Akamai Technologies is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 15.77. For comparison, its industry has an average Forward P/E of 31, which means Akamai Technologies is trading at a discount to the group.
Investors should also note that AKAM has a PEG ratio of 1.58 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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 AKAM in the coming trading sessions, be sure to utilize Zacks.com.