Yahoo Finance Akamai Technologies (AKAM) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Akamai Technologies (AKAM) closed at $108.02, marking a -0.5% move from the previous day. This change lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.42%.
Heading into today, shares of the cloud services provider had gained 0.45% over the past month, lagging the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. In that report, analysts expect Akamai Technologies to post earnings of $1.61 per share. This would mark year-over-year growth of 15%. Meanwhile, the latest consensus estimate predicts the revenue to be $989.22 million, indicating an 8.03% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.74 per share and a revenue of $4.09 billion, representing changes of +8.71% and +7.18%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Akamai Technologies is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Akamai Technologies is presently being traded at a Forward P/E ratio of 16.1. This represents a discount compared to its industry's average Forward P/E of 25.33.
Meanwhile, AKAM's PEG ratio is currently 2.2. 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. The Internet - Services was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
