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Akamai Technologies (AKAM) Declines More Than Market: Some Information for Investors
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Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $112.89, moving -5.52% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.
Heading into today, shares of the cloud services provider had lost 17.28% over the past month, lagging the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. On that day, Akamai Technologies is projected to report earnings of $1.59 per share, which would represent a year-over-year decline of 8.09%. Our most recent consensus estimate is calling for quarterly revenue of $1.09 billion, up 4.75% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.76 per share and a revenue of $4.49 billion, indicating changes of -5.06% and +6.8%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.09% higher. As of now, Akamai Technologies holds a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Akamai Technologies is currently being traded at a Forward P/E ratio of 17.69. For comparison, its industry has an average Forward P/E of 14.42, which means Akamai Technologies is trading at a premium to the group.
Meanwhile, AKAM's PEG ratio is currently 2.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 32% echelons 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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.
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Akamai Technologies (AKAM) Declines More Than Market: Some Information for Investors
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $112.89, moving -5.52% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.
Heading into today, shares of the cloud services provider had lost 17.28% over the past month, lagging the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. On that day, Akamai Technologies is projected to report earnings of $1.59 per share, which would represent a year-over-year decline of 8.09%. Our most recent consensus estimate is calling for quarterly revenue of $1.09 billion, up 4.75% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.76 per share and a revenue of $4.49 billion, indicating changes of -5.06% and +6.8%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.09% higher. As of now, Akamai Technologies holds a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Akamai Technologies is currently being traded at a Forward P/E ratio of 17.69. For comparison, its industry has an average Forward P/E of 14.42, which means Akamai Technologies is trading at a premium to the group.
Meanwhile, AKAM's PEG ratio is currently 2.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 32% echelons 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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.