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Why the Market Dipped But Akamai Technologies (AKAM) Gained Today
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Akamai Technologies (AKAM - Free Report) closed at $109.33 in the latest trading session, marking a +0.52% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq added 0.11%.
Prior to today's trading, shares of the cloud services provider had lost 1.34% over the past month. This has lagged the Computer and Technology sector's gain of 2.99% and the S&P 500's gain of 3.32% in that time.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. In that report, analysts expect Akamai Technologies to post earnings of $1.61 per share. This would mark year-over-year growth of 15%. Meanwhile, our latest consensus estimate is calling for revenue of $989.22 million, up 8.03% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.74 per share and a revenue of $4.09 billion, demonstrating changes of +8.71% and +7.18%, respectively, from the preceding year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. Akamai Technologies presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Akamai Technologies is presently being traded at a Forward P/E ratio of 16.13. This denotes a discount relative to the industry's average Forward P/E of 25.97.
One should further note that AKAM currently holds a PEG ratio of 2.2. 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. AKAM's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why the Market Dipped But Akamai Technologies (AKAM) Gained Today
Akamai Technologies (AKAM - Free Report) closed at $109.33 in the latest trading session, marking a +0.52% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq added 0.11%.
Prior to today's trading, shares of the cloud services provider had lost 1.34% over the past month. This has lagged the Computer and Technology sector's gain of 2.99% and the S&P 500's gain of 3.32% in that time.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. In that report, analysts expect Akamai Technologies to post earnings of $1.61 per share. This would mark year-over-year growth of 15%. Meanwhile, our latest consensus estimate is calling for revenue of $989.22 million, up 8.03% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.74 per share and a revenue of $4.09 billion, demonstrating changes of +8.71% and +7.18%, respectively, from the preceding year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. Akamai Technologies presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Akamai Technologies is presently being traded at a Forward P/E ratio of 16.13. This denotes a discount relative to the industry's average Forward P/E of 25.97.
One should further note that AKAM currently holds a PEG ratio of 2.2. 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. AKAM's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.