Akamai Technologies (AKAM) closed at $129.52 in the latest trading session, marking a +2.33% move from the prior day. This move outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Shares of the cloud services provider have depreciated by 2.62% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.59%, and the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company is expected to report EPS of $1.58, down 8.67% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.09 billion, reflecting a 4.76% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.74 per share and a revenue of $4.49 billion, demonstrating changes of -5.34% and +6.81%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.67% higher. Currently, Akamai Technologies is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Akamai Technologies has a Forward P/E ratio of 18.78 right now. This represents a premium compared to its industry average Forward P/E of 16.4.
It's also important to note that AKAM currently trades at a PEG ratio of 2.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.
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Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).