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Akamai Technologies (AKAM) Laps the Stock Market: Here's Why
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Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $104.27, moving +0.76% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.93%.
Heading into today, shares of the cloud services provider had lost 3.84% over the past month, lagging the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29% in that time.
The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company's earnings report is expected on November 7, 2023. In that report, analysts expect Akamai Technologies to post earnings of $1.51 per share. This would mark year-over-year growth of 19.84%. Alongside, our most recent consensus estimate is anticipating revenue of $944.57 million, indicating a 7.11% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.93 per share and a revenue of $3.78 billion, signifying shifts of +10.43% and +4.57%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.18% downward. At present, Akamai Technologies boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 17.45. This expresses a discount compared to the average Forward P/E of 24.27 of its industry.
It's also important to note that AKAM currently trades at a PEG ratio of 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.
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Akamai Technologies (AKAM) Laps the Stock Market: Here's Why
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $104.27, moving +0.76% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.93%.
Heading into today, shares of the cloud services provider had lost 3.84% over the past month, lagging the Computer and Technology sector's loss of 0.22% and the S&P 500's loss of 2.29% in that time.
The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company's earnings report is expected on November 7, 2023. In that report, analysts expect Akamai Technologies to post earnings of $1.51 per share. This would mark year-over-year growth of 19.84%. Alongside, our most recent consensus estimate is anticipating revenue of $944.57 million, indicating a 7.11% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.93 per share and a revenue of $3.78 billion, signifying shifts of +10.43% and +4.57%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.18% downward. At present, Akamai Technologies boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 17.45. This expresses a discount compared to the average Forward P/E of 24.27 of its industry.
It's also important to note that AKAM currently trades at a PEG ratio of 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.