Akamai Technologies (AKAM) closed at $99.35 in the latest trading session, marking a -2.69% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.72%.
Shares of the cloud services provider have appreciated by 17.02% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.88%, and the S&P 500's gain of 0.78%.
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 February 19, 2026. The company is expected to report EPS of $1.75, up 5.42% from the prior-year quarter. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.03 per share and a revenue of $4.19 billion, indicating changes of +8.49% and 0%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Akamai Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. Akamai Technologies currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 14.09. This represents a discount compared to its industry average Forward P/E of 17.46.
We can also see that AKAM currently has a PEG ratio of 2.36. 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. The Internet - Services industry had an average PEG ratio of 1.84 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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
