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Akamai Technologies (AKAM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Akamai Technologies (AKAM - Free Report) closed the latest trading day at $95.05, indicating a -0.77% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.93%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Coming into today, shares of the cloud services provider had gained 7.2% in the past month. In that same time, the Computer and Technology sector lost 3.88%, while the S&P 500 gained 1.08%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on August 8, 2024. On that day, Akamai Technologies is projected to report earnings of $1.54 per share, which would represent year-over-year growth of 3.36%. At the same time, our most recent consensus estimate is projecting a revenue of $976.44 million, reflecting a 4.35% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.30 per share and revenue of $3.99 billion. These totals would mark changes of +1.61% and +4.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 shifted 2.07% downward. Akamai Technologies currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, Akamai Technologies is currently exchanging hands at a Forward P/E ratio of 15.2. This indicates a discount in contrast to its industry's Forward P/E of 23.35.
Investors should also note that AKAM has a PEG ratio of 3.19 right now. 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. AKAM's industry had an average PEG ratio of 2.29 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons 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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.
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Akamai Technologies (AKAM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Akamai Technologies (AKAM - Free Report) closed the latest trading day at $95.05, indicating a -0.77% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.93%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Coming into today, shares of the cloud services provider had gained 7.2% in the past month. In that same time, the Computer and Technology sector lost 3.88%, while the S&P 500 gained 1.08%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on August 8, 2024. On that day, Akamai Technologies is projected to report earnings of $1.54 per share, which would represent year-over-year growth of 3.36%. At the same time, our most recent consensus estimate is projecting a revenue of $976.44 million, reflecting a 4.35% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.30 per share and revenue of $3.99 billion. These totals would mark changes of +1.61% and +4.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 shifted 2.07% downward. Akamai Technologies currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, Akamai Technologies is currently exchanging hands at a Forward P/E ratio of 15.2. This indicates a discount in contrast to its industry's Forward P/E of 23.35.
Investors should also note that AKAM has a PEG ratio of 3.19 right now. 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. AKAM's industry had an average PEG ratio of 2.29 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons 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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.