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Akamai Technologies (AKAM) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $99.59, marking a +1.11% move from the previous day. This change outpaced the S&P 500's 0.6% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 1.18%.

Coming into today, shares of the cloud services provider had lost 9.62% in the past month. In that same time, the Computer and Technology sector lost 6.18%, while the S&P 500 lost 0.79%.

Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2026. 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. 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.

AKAM's full-year Zacks Consensus Estimates are calling for earnings of $6.62 per share and revenue of $4.49 billion. These results would represent year-over-year changes of -7.02% and +6.59%, respectively.

It is also important to note the recent changes to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. Akamai Technologies is currently a Zacks Rank #4 (Sell).

Investors should also note Akamai Technologies's current valuation metrics, including its Forward P/E ratio of 14.88. This signifies a premium in comparison to the average Forward P/E of 14.8 for its industry.

We can also see that AKAM currently has a PEG ratio of 2.51. 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 1.72.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.

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