Back to top

Image: Bigstock

Why Akamai Technologies (AKAM) Dipped More Than Broader Market Today

Read MoreHide Full Article

Akamai Technologies (AKAM - Free Report) ended the recent trading session at $73.24, demonstrating a -2.99% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 2.71%. On the other hand, the Dow registered a loss of 1.9%, and the technology-centric Nasdaq decreased by 3.56%.

Shares of the cloud services provider witnessed a loss of 4.67% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.

Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on November 6, 2025. The company's upcoming EPS is projected at $1.64, signifying a 3.14% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 3.7% from the prior-year quarter.

AKAM's full-year Zacks Consensus Estimates are calling for earnings of $6.71 per share and revenue of $4.17 billion. These results would represent year-over-year changes of +3.55% and +4.36%, respectively.

It is also important to note the recent changes to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.54% higher. Akamai Technologies presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Akamai Technologies is presently being traded at a Forward P/E ratio of 11.25. This valuation marks a discount compared to its industry average Forward P/E of 24.3.

One should further note that AKAM currently holds a PEG ratio of 2.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry currently had an average PEG ratio of 1.64 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons of all 250+ industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Akamai Technologies, Inc. (AKAM) - free report >>

Published in