In the latest trading session, Akamai Technologies (AKAM) closed at $101.38, marking a -0.71% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq decreased by 0.36%.
Heading into today, shares of the cloud services provider had gained 13.94% over the past month, outpacing the Computer and Technology sector's gain of 2.31% and the S&P 500's gain of 4.19% in that time.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on February 20, 2025. It is anticipated that the company will report an EPS of $1.52, marking a 10.06% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.01 billion, indicating a 2% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Akamai Technologies. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Akamai Technologies boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Akamai Technologies is currently being traded at a Forward P/E ratio of 15.1. This indicates a discount in contrast to its industry's Forward P/E of 23.65.
Meanwhile, AKAM's PEG ratio is currently 2.48. 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 1.79 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 78, which puts it in the top 32% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
