Akamai Technologies (AKAM) closed the most recent trading day at $97.62, moving +1.8% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.24%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Prior to today's trading, shares of the cloud services provider had lost 13.21% lagged the Computer and Technology sector's gain of 9.41% and the S&P 500's gain of 6.42%.
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. The company's upcoming EPS is projected at $1.61, signifying a 5.29% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.07 billion, indicating a 5.51% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.87 per share and a revenue of $4.48 billion, signifying shifts of -3.51% and +6.49%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Akamai Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 1.73% downward. Akamai Technologies presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Akamai Technologies currently has a Forward P/E ratio of 13.97. For comparison, its industry has an average Forward P/E of 14.94, which means Akamai Technologies is trading at a discount to the group.
One should further note that AKAM currently holds a PEG ratio of 2. 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 industry currently had an average PEG ratio of 2.09 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 25% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).