Akamai Technologies (AKAM) closed the most recent trading day at $92.80, moving +0.45% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 10.86%.
Coming into today, shares of the cloud services provider had gained 4.23% in the past month. In that same time, the Computer and Technology sector gained 2.6%, while the S&P 500 gained 3.98%.
Investors will be hoping for strength from Akamai Technologies as it approaches its next earnings release, which is expected to be August 8, 2023. On that day, Akamai Technologies is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 4.44%. Our most recent consensus estimate is calling for quarterly revenue of $931.62 million, up 3.13% from the year-ago period.
AKAM's full-year Zacks Consensus Estimates are calling for earnings of $5.77 per share and revenue of $3.76 billion. These results would represent year-over-year changes of +7.45% and +4.08%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate has moved 0.05% higher. Akamai Technologies currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Akamai Technologies is currently trading at a Forward P/E ratio of 16.02. Its industry sports an average Forward P/E of 31.11, so we one might conclude that Akamai Technologies is trading at a discount comparatively.
We can also see that AKAM currently has a PEG ratio of 2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
