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Akamai Technologies (AKAM) Stock Sinks As Market Gains: Here's Why
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Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $85.10, moving -2.46% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
The stock of cloud services provider has risen by 0.75% in the past month, leading the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. The company is predicted to post an EPS of $1.75, indicating a 5.42% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.08 billion, indicating a 5.59% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.03 per share and a revenue of $4.19 billion, representing changes of +8.49% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. Currently, Akamai Technologies is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 12.01. For comparison, its industry has an average Forward P/E of 17.15, which means Akamai Technologies is trading at a discount to the group.
Investors should also note that AKAM has a PEG ratio of 2.02 right now. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Akamai Technologies (AKAM) Stock Sinks As Market Gains: Here's Why
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $85.10, moving -2.46% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
The stock of cloud services provider has risen by 0.75% in the past month, leading the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. The company is predicted to post an EPS of $1.75, indicating a 5.42% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.08 billion, indicating a 5.59% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.03 per share and a revenue of $4.19 billion, representing changes of +8.49% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained stagnant. Currently, Akamai Technologies is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 12.01. For comparison, its industry has an average Forward P/E of 17.15, which means Akamai Technologies is trading at a discount to the group.
Investors should also note that AKAM has a PEG ratio of 2.02 right now. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.