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Akamai Technologies (AKAM) Increases Yet Falls Behind Market: What Investors Need to Know July 31, 2024
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The most recent trading session ended with Akamai Technologies (AKAM - Free Report) standing at $98.28, reflecting a +0.41% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 2.64%.
Shares of the cloud services provider have appreciated by 7.77% over the course of the past month, outperforming the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 0.44%.
The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company's earnings report is expected on August 8, 2024. The company is predicted to post an EPS of $1.54, indicating a 3.36% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $976.44 million, reflecting a 4.35% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.30 per share and a revenue of $3.99 billion, representing changes of +1.61% and +4.67%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Akamai Technologies currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 15.53 right now. Its industry sports an average Forward P/E of 22.35, so one might conclude that Akamai Technologies is trading at a discount comparatively.
Investors should also note that AKAM has a PEG ratio of 3.26 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AKAM's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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The most recent trading session ended with Akamai Technologies (AKAM - Free Report) standing at $98.28, reflecting a +0.41% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 2.64%.
Shares of the cloud services provider have appreciated by 7.77% over the course of the past month, outperforming the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 0.44%.
The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company's earnings report is expected on August 8, 2024. The company is predicted to post an EPS of $1.54, indicating a 3.36% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $976.44 million, reflecting a 4.35% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.30 per share and a revenue of $3.99 billion, representing changes of +1.61% and +4.67%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Akamai Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Akamai Technologies currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 15.53 right now. Its industry sports an average Forward P/E of 22.35, so one might conclude that Akamai Technologies is trading at a discount comparatively.
Investors should also note that AKAM has a PEG ratio of 3.26 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AKAM's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.