Content delivery network (CDN) and cloud infrastructure services
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Akamai Technologies (AKAM) is a Top-Ranked Value Stock: Should You Buy?
ZACKSยท 2025-10-10 14:40
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down choices [8] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended [9] - Stocks with lower ranks (4 or 5) should be approached cautiously, even if they have high Style Scores, due to potential downward earnings forecasts [10] Company Spotlight: Akamai Technologies - Akamai Technologies, Inc. is recognized as a global provider of content delivery network (CDN) and cloud infrastructure services [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, with a Value Style Score of B, supported by a forward P/E ratio of 11.25 [11] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.24 to $6.71 per share, with an average earnings surprise of +7.1% [12]