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Akamai Technologies (AKAM) Advances While Market Declines: Some Information for Investors

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In the latest close session, Akamai Technologies (AKAM - Free Report) was up +1.28% at $76.23. The stock's change was more than the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.34%.

The stock of cloud services provider has fallen by 2.17% in the past month, lagging the Computer and Technology sector's gain of 8.98% and the S&P 500's gain of 3.08%.

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 $1.62 per share. This would mark year-over-year growth of 1.89%. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 3.7% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.66 per share and a revenue of $4.17 billion, representing changes of +2.78% and +4.36%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. The Zacks Consensus EPS estimate has moved 1.6% higher within the past month. Akamai Technologies is currently a Zacks Rank #3 (Hold).

In terms of valuation, Akamai Technologies is currently trading at a Forward P/E ratio of 11.3. This indicates a discount in contrast to its industry's Forward P/E of 25.29.

It is also worth noting that AKAM currently has a PEG ratio of 2.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.7.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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