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The most recent trading session ended with Akamai Technologies (AKAM) standing at $93.56, reflecting a -1.95% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 1.26%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.77%.
The the stock of cloud services provider has fallen by 2.03% in the past month, lagging the Computer and Technology sector's gain of 0.84% and overreaching the S&P 500's loss of 2.82%.
The investment community will be paying close attention to the earnings performance of Akamai Technologies in its upcoming release. The company is forecasted to report an EPS of $1.52, showcasing a 10.06% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 2% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 past month, the Zacks Consensus EPS estimate has moved 1.45% higher. Akamai Technologies is currently a Zacks Rank #3 (Hold).
In the context of valuation, Akamai Technologies is at present trading with a Forward P/E ratio of 14.09. For comparison, its industry has an average Forward P/E of 22.57, which means Akamai Technologies is trading at a discount to the group.
Meanwhile, AKAM's PEG ratio is currently 2.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AKAM's industry had an average PEG ratio of 1.45 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% of all 250+ industries.