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Here's Why Akamai Technologies (AKAM) Fell More Than Broader Market
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Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $105.82, moving -0.4% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.
Shares of the cloud services provider witnessed a loss of 4.29% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.26% and the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.61, showcasing a 15% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $989.22 million, indicating an 8.03% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $4.09 billion. These totals would mark changes of +9.03% and +7.18%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Akamai Technologies is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Akamai Technologies is holding a Forward P/E ratio of 15.72. This signifies a discount in comparison to the average Forward P/E of 23.51 for its industry.
We can also see that AKAM currently has a PEG ratio of 2.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Here's Why Akamai Technologies (AKAM) Fell More Than Broader Market
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $105.82, moving -0.4% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.
Shares of the cloud services provider witnessed a loss of 4.29% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 4.26% and the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.61, showcasing a 15% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $989.22 million, indicating an 8.03% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $4.09 billion. These totals would mark changes of +9.03% and +7.18%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Akamai Technologies is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Akamai Technologies is holding a Forward P/E ratio of 15.72. This signifies a discount in comparison to the average Forward P/E of 23.51 for its industry.
We can also see that AKAM currently has a PEG ratio of 2.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.