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Here's Why Akamai Technologies (AKAM) Fell More Than Broader Market
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In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $110.41, marking a -6.78% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The stock of cloud services provider has risen by 9.61% in the past month, leading the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company is predicted to post an EPS of $1.69, indicating a 9.14% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 6.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.7 per share and a revenue of $4.49 billion, demonstrating changes of -5.9% and +6.61%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 0.57% fall in the Zacks Consensus EPS estimate. Akamai Technologies is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 17.68. This valuation marks a premium compared to its industry average Forward P/E of 15.8.
It is also worth noting that AKAM currently has a PEG ratio of 2.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 group has a Zacks Industry Rank of 181, putting it in the bottom 27% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Akamai Technologies (AKAM) Fell More Than Broader Market
In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $110.41, marking a -6.78% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The stock of cloud services provider has risen by 9.61% in the past month, leading the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company is predicted to post an EPS of $1.69, indicating a 9.14% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 6.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $6.7 per share and a revenue of $4.49 billion, demonstrating changes of -5.9% and +6.61%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 0.57% fall in the Zacks Consensus EPS estimate. Akamai Technologies is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 17.68. This valuation marks a premium compared to its industry average Forward P/E of 15.8.
It is also worth noting that AKAM currently has a PEG ratio of 2.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 group has a Zacks Industry Rank of 181, putting it in the bottom 27% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.