Akamai Technologies (AKAM) closed at $108.49 in the latest trading session, marking a +1.75% move from the prior day. This change outpaced the S&P 500’s 0.94% loss on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.53%.
Heading into today, shares of the cloud services provider had gained 5.32% over the past month, outpacing the Computer and Technology sector’s gain of 3.69% and the S&P 500’s gain of 1.85% in that time.
Wall Street will be looking for positivity from Akamai Technologies as it approaches its next earnings report date. In that report, analysts expect Akamai Technologies to post earnings of $1.51 per share. This would mark year-over-year growth of 19.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $944.57 million, up 7.11% from the year-ago period.
AKAM’s full-year Zacks Consensus Estimates are calling for earnings of $5.94 per share and revenue of $3.78 billion. These results would represent year-over-year changes of +10.61% and +4.57%, respectively.
Investors should also note any recent changes to analyst estimates for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 17.96. For comparison, its industry has an average Forward P/E of 31, which means Akamai Technologies is trading at a discount to the group.
Also, we should mention that AKAM has a PEG ratio of 1.85. 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. AKAM’s industry had an average PEG ratio of 1.85 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
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