Akamai Technologies (AKAM) Beats Stock Market Upswing: What Investors Need to Know

In the latest close session, Akamai Technologies (AKAM) was up +1.65% at $77.09. This move outpaced the S&P 500's daily gain of 0.48%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 0.94%. Prior to today's trading, shares of the cloud services provider had lost 0.29% lagged the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.Analysts and investors alike will be keeping a close eye on the performance of Akamai Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.62, indicating a 1.89% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 3.7% from the prior-year quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of $6.66 per share and revenue of $4.17 billion, which would represent changes of +2.78% and +4.36%, respectively, from the prior year. Investors should also pay attention to any latest changes in analyst estimates for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. 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 past month, the Zacks Consensus EPS estimate has moved 1.6% higher. Akamai Technologies currently has a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 11.38 right now. This expresses a discount compared to the average Forward P/E of 25.04 of its industry. We can also see that AKAM currently has a PEG ratio of 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.68. The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 250 industries. The Zacks Industry Rank gauges the strength of our 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>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 ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks