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Akamai Technologies (AKAM) Suffers a Larger Drop Than the General Market: Key Insights
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Akamai Technologies (AKAM - Free Report) closed at $105.57 in the latest trading session, marking a -1.14% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.29%, and the technology-centric Nasdaq decreased by 0.56%.
Shares of the cloud services provider have depreciated by 14.56% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.49%, and the S&P 500's loss of 0.82%.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.69, indicating a 9.14% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.12 billion, reflecting a 6.29% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $4.49 billion, which would represent changes of -5.62% and +6.59%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 1.24% lower within the past month. Akamai Technologies is currently a Zacks Rank #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 15.9. Its industry sports an average Forward P/E of 15.94, so one might conclude that Akamai Technologies is trading at a discount comparatively.
One should further note that AKAM currently holds a PEG ratio of 2.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.5.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Akamai Technologies (AKAM) Suffers a Larger Drop Than the General Market: Key Insights
Akamai Technologies (AKAM - Free Report) closed at $105.57 in the latest trading session, marking a -1.14% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.29%, and the technology-centric Nasdaq decreased by 0.56%.
Shares of the cloud services provider have depreciated by 14.56% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.49%, and the S&P 500's loss of 0.82%.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.69, indicating a 9.14% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.12 billion, reflecting a 6.29% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $4.49 billion, which would represent changes of -5.62% and +6.59%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 1.24% lower within the past month. Akamai Technologies is currently a Zacks Rank #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 15.9. Its industry sports an average Forward P/E of 15.94, so one might conclude that Akamai Technologies is trading at a discount comparatively.
One should further note that AKAM currently holds a PEG ratio of 2.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.5.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.