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Akamai Technologies (AKAM) Stock Moves -1.26%: What You Should Know

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Akamai Technologies (AKAM - Free Report) closed at $106.25 in the latest trading session, marking a -1.26% move from the prior day. This change was narrower than the S&P 500's 1.47% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.

Heading into today, shares of the cloud services provider had gained 4.25% over the past month, outpacing the Computer and Technology sector's loss of 1.46% and the S&P 500's loss of 1.43% in that time.

Wall Street will be looking for positivity from Akamai Technologies as it approaches its next earnings report date. The company is expected to report EPS of $1.51, up 19.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $944.57 million, up 7.11% from the prior-year quarter.

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. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Akamai Technologies is currently trading at a Forward P/E ratio of 18.13. This valuation marks a discount compared to its industry's average Forward P/E of 27.55.

Also, we should mention that AKAM has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AKAM's industry had an average PEG ratio of 1.87 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 101, which puts it in the top 41% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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