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Akamai Technologies (AKAM) Stock Moves -0.11%: What You Should Know

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The most recent trading session ended with Akamai Technologies (AKAM - Free Report) standing at $106.99, reflecting a -0.11% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.85%. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 0.96%.

Shares of the cloud services provider witnessed a loss of 1.27% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.07% and the S&P 500's loss of 3.02%.

Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2023. The company is forecasted to report an EPS of $1.51, showcasing a 19.84% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $944.57 million, up 7.11% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.93 per share and revenue of $3.78 billion, indicating changes of +10.43% and +4.57%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.15% fall in the Zacks Consensus EPS estimate. Currently, Akamai Technologies is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 18.06. For comparison, its industry has an average Forward P/E of 25.51, which means Akamai Technologies is trading at a discount to the group.

We can also see that AKAM currently has a PEG ratio of 1.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Services industry stood at 1.89 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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