Akamai Technologies (AKAM) closed at $85.71 in the latest trading session, marking a -2.8% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.01%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.44%.
Shares of the cloud services provider witnessed a gain of 2% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.69%, and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Akamai Technologies in its upcoming release. The company's earnings per share (EPS) are projected to be $1.75, reflecting a 5.42% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.08 billion, indicating a 5.62% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.04 per share and a revenue of $4.19 billion, representing changes of +8.64% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.12% increase. Currently, Akamai Technologies is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 12.13 right now. This valuation marks a discount compared to its industry average Forward P/E of 18.08.
Investors should also note that AKAM has a PEG ratio of 2.04 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.71.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% 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.
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
