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Why Akamai Technologies (AKAM) Dipped More Than Broader Market Today
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In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $106.35, marking a -1.94% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.25%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq gained 0.24%.
Coming into today, shares of the cloud services provider had gained 1.87% in the past month. In that same time, the Computer and Technology sector gained 4%, while the S&P 500 lost 0.42%.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.67, showcasing a 10.22% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 6.07% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.63 per share and revenue of $4.49 billion, indicating changes of -6.88% and +6.59%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.67% lower. Akamai Technologies is currently a Zacks Rank #4 (Sell).
With respect to valuation, Akamai Technologies is currently being traded at a Forward P/E ratio of 16.35. This valuation marks a premium compared to its industry average Forward P/E of 15.48.
We can additionally observe that AKAM currently boasts a PEG ratio of 2.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.68.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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Why Akamai Technologies (AKAM) Dipped More Than Broader Market Today
In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $106.35, marking a -1.94% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.25%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq gained 0.24%.
Coming into today, shares of the cloud services provider had gained 1.87% in the past month. In that same time, the Computer and Technology sector gained 4%, while the S&P 500 lost 0.42%.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.67, showcasing a 10.22% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 6.07% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.63 per share and revenue of $4.49 billion, indicating changes of -6.88% and +6.59%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.67% lower. Akamai Technologies is currently a Zacks Rank #4 (Sell).
With respect to valuation, Akamai Technologies is currently being traded at a Forward P/E ratio of 16.35. This valuation marks a premium compared to its industry average Forward P/E of 15.48.
We can additionally observe that AKAM currently boasts a PEG ratio of 2.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.68.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.