Akamai Technologies (AKAM) Ascends But Remains Behind Market: Some Facts to Note

In the latest trading session, Akamai Technologies (AKAM) closed at $91.01, marking a +0.56% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.Shares of the cloud services provider have depreciated by 4.31% over the course of the past month, underperforming the Computer and Technology sector's loss of 4.13% and the S&P 500's loss of 2.14%.The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company's earnings report is expected on February 20, 2025. The company's earnings per share (EPS) are projected to be $1.52, reflecting a 10.06% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.01 billion, reflecting a 2% rise from the equivalent quarter last year.It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 0.74% upward. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).Looking at its valuation, Akamai Technologies is holding a Forward P/E ratio of 13.39. This signifies a discount in comparison to the average Forward P/E of 22.2 for its industry.We can also see that AKAM currently has a PEG ratio of 2.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.53 at the close of the market yesterday.The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks