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

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In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $90.65, marking a +2.01% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1%.

Heading into today, shares of the cloud services provider had gained 1.28% over the past month, lagging the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.06%.

Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company's upcoming EPS is projected at $1.75, signifying a 5.42% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.08 billion, indicating a 5.62% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.04 per share and revenue of $4.19 billion, which would represent changes of +8.64% and 0%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. Akamai Technologies presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 12.23. This denotes a discount relative to the industry average Forward P/E of 18.26.

It's also important to note that AKAM currently trades at a PEG ratio of 2.05. 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. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.76.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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