Akamai Technologies (AKAM) closed at $79.44 in the latest trading session, marking a -1.48% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.
The stock of cloud services provider has risen by 3.12% in the past month, lagging the Computer and Technology sector's gain of 6.2% and the S&P 500's gain of 4.37%.
Investors will be eagerly watching for the performance of Akamai Technologies in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 7, 2025. The company is predicted to post an EPS of $1.55, indicating a 1.9% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.02 billion, indicating a 4.26% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.27 per share and revenue of $4.12 billion, indicating changes of -3.24% and +3.31%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. Akamai Technologies presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Akamai Technologies is presently being traded at a Forward P/E ratio of 12.86. For comparison, its industry has an average Forward P/E of 20.26, which means Akamai Technologies is trading at a discount to the group.
We can additionally observe that AKAM currently boasts a PEG ratio of 1.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AKAM's industry had an average PEG ratio of 1.59 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Akamai Technologies, Inc. (AKAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
