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Akamai Technologies (AKAM) Outpaces Stock Market Gains: What You Should Know
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Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $93.80, moving +1.45% from the previous trading session. This change outpaced the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 4.62%.
Prior to today's trading, shares of the cloud services provider had gained 1.05% over the past month. This has lagged the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 2.65% in that time.
Akamai Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.41, up 4.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $931.62 million, up 3.13% from the year-ago period.
AKAM's full-year Zacks Consensus Estimates are calling for earnings of $5.77 per share and revenue of $3.76 billion. These results would represent year-over-year changes of +7.45% and +4.08%, respectively.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Akamai Technologies is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 16.04. Its industry sports an average Forward P/E of 31, so we one might conclude that Akamai Technologies is trading at a discount comparatively.
Meanwhile, AKAM's PEG ratio is currently 1.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Akamai Technologies (AKAM) Outpaces Stock Market Gains: What You Should Know
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $93.80, moving +1.45% from the previous trading session. This change outpaced the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 4.62%.
Prior to today's trading, shares of the cloud services provider had gained 1.05% over the past month. This has lagged the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 2.65% in that time.
Akamai Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.41, up 4.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $931.62 million, up 3.13% from the year-ago period.
AKAM's full-year Zacks Consensus Estimates are calling for earnings of $5.77 per share and revenue of $3.76 billion. These results would represent year-over-year changes of +7.45% and +4.08%, respectively.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Akamai Technologies is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 16.04. Its industry sports an average Forward P/E of 31, so we one might conclude that Akamai Technologies is trading at a discount comparatively.
Meanwhile, AKAM's PEG ratio is currently 1.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.91 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.