Akamai Technologies (AKAM) closed the most recent trading day at $77.93, moving +1.16% from the previous trading session. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw an increase of 0.74%.
The cloud services provider's shares have seen a decrease of 2.11% over the last month, not keeping up with the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
The investment community will be closely monitoring the performance of Akamai Technologies in its forthcoming earnings report. The company is scheduled to release its earnings on August 7, 2025. It is anticipated that the company will report an EPS of $1.55, marking a 1.9% fall compared to the same quarter of the previous 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.27 per share and a revenue of $4.12 billion, indicating changes of -3.24% and +3.31%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Akamai Technologies is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Akamai Technologies is presently being traded at a Forward P/E ratio of 12.28. This indicates a discount in contrast to its industry's Forward P/E of 19.88.
It's also important to note that AKAM currently trades at a PEG ratio of 1.54. 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 1.54 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 73, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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
