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Why Akamai Technologies (AKAM) Dipped More Than Broader Market Today
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In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $88.92, marking a -0.49% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.18%.
Heading into today, shares of the cloud services provider had lost 4.9% over the past month, lagging the Computer and Technology sector's gain of 6.77% and the S&P 500's gain of 3.15% in that time.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.55, indicating a 4.03% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $976.3 million, indicating a 4.34% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.32 per share and a revenue of $3.99 billion, representing changes of +1.94% and +4.66%, respectively, from the prior year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Akamai Technologies holds a Zacks Rank of #4 (Sell).
In terms of valuation, Akamai Technologies is currently trading at a Forward P/E ratio of 14.14. This represents a discount compared to its industry's average Forward P/E of 22.45.
It's also important to note that AKAM currently trades at a PEG ratio of 2.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AKAM's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Why Akamai Technologies (AKAM) Dipped More Than Broader Market Today
In the latest trading session, Akamai Technologies (AKAM - Free Report) closed at $88.92, marking a -0.49% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.18%.
Heading into today, shares of the cloud services provider had lost 4.9% over the past month, lagging the Computer and Technology sector's gain of 6.77% and the S&P 500's gain of 3.15% in that time.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.55, indicating a 4.03% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $976.3 million, indicating a 4.34% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.32 per share and a revenue of $3.99 billion, representing changes of +1.94% and +4.66%, respectively, from the prior year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Akamai Technologies holds a Zacks Rank of #4 (Sell).
In terms of valuation, Akamai Technologies is currently trading at a Forward P/E ratio of 14.14. This represents a discount compared to its industry's average Forward P/E of 22.45.
It's also important to note that AKAM currently trades at a PEG ratio of 2.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AKAM's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.