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Fastly (FSLY) Advances While Market Declines: Some Information for Investors

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The most recent trading session ended with Fastly (FSLY - Free Report) standing at $21.22, reflecting a +0.14% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.

Coming into today, shares of the cloud software developer had gained 19.05% in the past month. In that same time, the Computer and Technology sector gained 6.36%, while the S&P 500 gained 3.36%.

The investment community will be paying close attention to the earnings performance of Fastly in its upcoming release. The company is slated to reveal its earnings on February 14, 2024. The company is forecasted to report an EPS of -$0.02, showcasing a 75% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $139.25 million, showing a 16.7% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for Fastly should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.28% downward. Fastly is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Fastly has a Forward P/E ratio of 847.6 right now. This represents a premium compared to its industry's average Forward P/E of 34.36.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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