Akamai Technologies (AKAM) closed the most recent trading day at $116.00, moving +1.85% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 2.51%. Elsewhere, the Dow gained 2.85%, while the tech-heavy Nasdaq added 2.8%.
Prior to today's trading, shares of the cloud services provider had gained 8.99% outpaced the Computer and Technology sector's loss of 0.84% and the S&P 500's loss of 1.66%.
Market participants will be closely following the financial results of Akamai Technologies in its upcoming release. The company plans to announce its earnings on May 7, 2026. In that report, analysts expect Akamai Technologies to post earnings of $1.64 per share. This would mark a year-over-year decline of 3.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.07 billion, up 5.87% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.93 per share and revenue of $4.48 billion. These totals would mark changes of -2.67% and +6.51%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Akamai Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Akamai Technologies presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 16.44. This expresses a premium compared to the average Forward P/E of 14.03 of its industry.
One should further note that AKAM currently holds a PEG ratio of 2.36. 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. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.92.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 172, positioning it in the bottom 30% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).