Akamai Technologies (AKAM) Exceeds Market Returns: Some Facts to Consider

Akamai Technologies (AKAM) closed at $81.11 in the latest trading session, marking a +0.66% move from the prior day. This change outpaced the S&P 500's 0.63% gain on the day. Meanwhile, the Dow experienced a rise of 0.21%, and the technology-dominated Nasdaq saw an increase of 1.52%.The cloud services provider's stock has dropped by 1.29% in the past month, falling short of the Computer and Technology sector's gain of 1.66% and the S&P 500's loss of 0.7%.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 May 8, 2025. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 3.66% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 2.2% from the year-ago period.AKAM's full-year Zacks Consensus Estimates are calling for earnings of $6.25 per share and revenue of $4.1 billion. These results would represent year-over-year changes of -3.55% and +2.72%, respectively.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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Akamai Technologies presently features a Zacks Rank of #3 (Hold).In terms of valuation, Akamai Technologies is currently trading at a Forward P/E ratio of 12.9. This indicates a discount in contrast to its industry's Forward P/E of 18.13.Also, we should mention that AKAM has a PEG ratio of 2.12. 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 average PEG ratio for the Internet - Services industry stood at 1.32 at the close of the market yesterday.The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 30% of over 250 industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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