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Akamai Technologies (AKAM) Rises Higher Than Market: Key Facts
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Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $78.01, moving +2.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Prior to today's trading, shares of the cloud services provider had lost 2.22% lagged the Computer and Technology sector's gain of 8.78% and the S&P 500's gain of 3.94%.
The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company is forecasted to report an EPS of $1.62, showcasing a 1.89% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.04 billion, reflecting a 3.7% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.66 per share and revenue of $4.17 billion. These totals would mark changes of +2.78% and +4.36%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% higher. 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 11.38. For comparison, its industry has an average Forward P/E of 24.61, which means Akamai Technologies is trading at a discount to the group.
We can also see that AKAM currently has a PEG ratio of 2.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.66.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries.
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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.
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Akamai Technologies (AKAM) Rises Higher Than Market: Key Facts
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $78.01, moving +2.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Prior to today's trading, shares of the cloud services provider had lost 2.22% lagged the Computer and Technology sector's gain of 8.78% and the S&P 500's gain of 3.94%.
The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company is forecasted to report an EPS of $1.62, showcasing a 1.89% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.04 billion, reflecting a 3.7% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.66 per share and revenue of $4.17 billion. These totals would mark changes of +2.78% and +4.36%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% higher. 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 11.38. For comparison, its industry has an average Forward P/E of 24.61, which means Akamai Technologies is trading at a discount to the group.
We can also see that AKAM currently has a PEG ratio of 2.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.66.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries.
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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.