In the latest trading session, Akamai Technologies (AKAM) closed at $91.01, marking a +0.56% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.

Shares of the cloud services provider have depreciated by 4.31% over the course of the past month, underperforming the Computer and Technology sector's loss of 4.13% and the S&P 500's loss of 2.14%.

The upcoming earnings release of Akamai Technologies will be of great interest to investors. The company's earnings report is expected on February 20, 2025. The company's earnings per share (EPS) are projected to be $1.52, reflecting a 10.06% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.01 billion, reflecting a 2% rise from the equivalent quarter last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Akamai Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.74% upward. Akamai Technologies is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Akamai Technologies is holding a Forward P/E ratio of 13.39. This signifies a discount in comparison to the average Forward P/E of 22.2 for its industry.

We can also see that AKAM currently has a PEG ratio of 2.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.53 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.

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.

To follow AKAM in the coming trading sessions, be sure to utilize Zacks.com.

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