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Akamai Technologies (AKAM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $112.81, moving -4.57% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.66%.
The stock of cloud services provider has fallen by 26.27% in the past month, lagging the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. In that report, analysts expect Akamai Technologies to post earnings of $1.58 per share. This would mark a year-over-year decline of 8.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 4.75% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.75 per share and revenue of $4.49 billion. These totals would mark changes of -5.2% and +6.8%, respectively, from last year.
Investors should also take note of any recent adjustments 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% higher. Akamai Technologies is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Akamai Technologies's current valuation metrics, including its Forward P/E ratio of 17.51. This denotes a premium relative to the industry average Forward P/E of 14.8.
Also, we should mention that AKAM has a PEG ratio of 2.15. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.61 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Akamai Technologies (AKAM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $112.81, moving -4.57% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.66%.
The stock of cloud services provider has fallen by 26.27% in the past month, lagging the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. In that report, analysts expect Akamai Technologies to post earnings of $1.58 per share. This would mark a year-over-year decline of 8.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 4.75% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.75 per share and revenue of $4.49 billion. These totals would mark changes of -5.2% and +6.8%, respectively, from last year.
Investors should also take note of any recent adjustments 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% higher. Akamai Technologies is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Akamai Technologies's current valuation metrics, including its Forward P/E ratio of 17.51. This denotes a premium relative to the industry average Forward P/E of 14.8.
Also, we should mention that AKAM has a PEG ratio of 2.15. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.61 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.