We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Akamai Technologies (AKAM) Advances But Underperforms Market: Key Facts
Read MoreHide Full Article
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $97.30, moving +0.66% from the previous trading session. This move lagged the S&P 500's daily gain of 0.75%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1%.
Shares of the cloud services provider have depreciated by 3.08% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.48% and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. The company is expected to report EPS of $1.59, down 2.45% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 3.62% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.43 per share and a revenue of $4 billion, representing changes of +3.71% and +4.84%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Akamai Technologies is at present trading with a Forward P/E ratio of 15.04. For comparison, its industry has an average Forward P/E of 30.5, which means Akamai Technologies is trading at a discount to the group.
It is also worth noting that AKAM currently has a PEG ratio of 2.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 2.14 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 38% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Akamai Technologies (AKAM) Advances But Underperforms Market: Key Facts
Akamai Technologies (AKAM - Free Report) closed the most recent trading day at $97.30, moving +0.66% from the previous trading session. This move lagged the S&P 500's daily gain of 0.75%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1%.
Shares of the cloud services provider have depreciated by 3.08% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.48% and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. The company is expected to report EPS of $1.59, down 2.45% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 3.62% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.43 per share and a revenue of $4 billion, representing changes of +3.71% and +4.84%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Akamai Technologies is at present trading with a Forward P/E ratio of 15.04. For comparison, its industry has an average Forward P/E of 30.5, which means Akamai Technologies is trading at a discount to the group.
It is also worth noting that AKAM currently has a PEG ratio of 2.13. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 2.14 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 38% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.