Akamai Technologies (AKAM) closed the latest trading day at $94.58, indicating a +0.49% change from the previous session's end. This change outpaced the S&P 500's 0.09% loss on the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.1%.
The cloud services provider's stock has climbed by 7% in the past month, exceeding the Computer and Technology sector's gain of 3.04% and the S&P 500's loss of 0.29%.
The investment community will be paying close attention to the earnings performance of Akamai Technologies in its upcoming release. The company is predicted to post an EPS of $1.53, indicating a 9.47% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 1.9% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.34 per share and revenue of $3.99 billion, which would represent changes of +2.26% and +4.54%, respectively, from the prior year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 witnessed a 0.3% decrease. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Akamai Technologies is currently exchanging hands at a Forward P/E ratio of 14.84. Its industry sports an average Forward P/E of 23.71, so one might conclude that Akamai Technologies is trading at a discount comparatively.
Meanwhile, AKAM's PEG ratio is currently 2.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 2.06 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 30, placing it within the top 12% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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