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Akamai Technologies (AKAM) Falls More Steeply Than Broader Market: What Investors Need to Know
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Akamai Technologies (AKAM - Free Report) closed at $99.93 in the latest trading session, marking a -1.69% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.02%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.15%.
The cloud services provider's stock has dropped by 3.71% in the past month, falling short of the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on November 5, 2026. The company's upcoming EPS is projected at $1.67, signifying a 10.22% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.12 billion, indicating a 6.07% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.62 per share and revenue of $4.49 billion. These totals would mark changes of -7.02% and +6.59%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.7% lower. Currently, Akamai Technologies is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 15.35 right now. This expresses a premium compared to the average Forward P/E of 14.98 of its industry.
We can additionally observe that AKAM currently boasts a PEG ratio of 2.59. 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. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.81.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 32% 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) Falls More Steeply Than Broader Market: What Investors Need to Know
Akamai Technologies (AKAM - Free Report) closed at $99.93 in the latest trading session, marking a -1.69% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.02%. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.15%.
The cloud services provider's stock has dropped by 3.71% in the past month, falling short of the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on November 5, 2026. The company's upcoming EPS is projected at $1.67, signifying a 10.22% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.12 billion, indicating a 6.07% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.62 per share and revenue of $4.49 billion. These totals would mark changes of -7.02% and +6.59%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.7% lower. Currently, Akamai Technologies is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 15.35 right now. This expresses a premium compared to the average Forward P/E of 14.98 of its industry.
We can additionally observe that AKAM currently boasts a PEG ratio of 2.59. 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. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.81.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 32% 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.