Akamai Technologies (AKAM) closed the most recent trading day at $79.79, moving +0.74% from the previous trading session. The stock performed in line with S&P 500. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.
The the stock of cloud services provider has fallen by 2.89% in the past month, leading the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.
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 May 8, 2025. It is anticipated that the company will report an EPS of $1.58, marking a 3.66% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 2.2% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.25 per share and revenue of $4.1 billion, which would represent changes of -3.55% and +2.72%, respectively, from the prior year.
Any recent changes to analyst estimates for Akamai Technologies should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Right now, Akamai Technologies possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 12.67 right now. This expresses a discount compared to the average Forward P/E of 18.61 of its industry.
We can additionally observe that AKAM currently boasts a PEG ratio of 2.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.3.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 178, finds itself in the bottom 29% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Akamai Technologies, Inc. (AKAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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