Akamai Technologies (AKAM) Outperforms Broader Market: What You Need to Know

Company Performance - Akamai Technologies (AKAM) closed at $100.11, with a daily gain of +0.47%, outperforming the S&P 500's gain of 0.4% [1] - Over the past month, Akamai's shares declined by 0.44%, underperforming the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71% [1] - The upcoming earnings report is expected to show an EPS of $1.59, reflecting a 2.45% decline year-over-year, while revenue is projected at $1 billion, indicating a 3.62% increase [1] Earnings Estimates - For the full year, Zacks Consensus Estimates project earnings of $6.43 per share and revenue of $4 billion, representing increases of +3.71% and +4.84% respectively from the previous year [2] - Recent analyst estimate revisions suggest a favorable outlook on Akamai's business health and profitability [2] - The consensus EPS projection has increased by 0.26% in the past 30 days, with Akamai currently holding a Zacks Rank of 3 (Hold) [3] Valuation Metrics - Akamai Technologies has a Forward P/E ratio of 15.51, significantly lower than the industry average of 30.63, indicating a discount relative to its peers [3] - The company has a PEG ratio of 2.2, compared to the Internet - Services industry's average PEG ratio of 1.9, suggesting a higher expected earnings growth rate relative to its valuation [3] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 137, placing it in the bottom 46% of over 250 industries [4] - The Zacks Industry Rank assesses the performance potential of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [4]