Trade-Ideas: Akamai Technologies (AKAM) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Akamai Technologies ( AKAM) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Akamai Technologies as such a stock due to the following factors:

  • AKAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.0 million.
  • AKAM is up 10.4% today from today's close.

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More details on AKAM:

Akamai Technologies, Inc. provides content delivery and cloud infrastructure services for accelerating and improving the delivery of content and applications over the Internet in the United States and internationally. AKAM has a PE ratio of 37.9. Currently there are 14 analysts that rate Akamai Technologies a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Akamai Technologies has been 1.7 million shares per day over the past 30 days. Akamai has a market cap of $9.3 billion and is part of the technology sector and internet industry. The stock has a beta of 1.62 and a short float of 7.1% with 6.14 days to cover. Shares are up 26.9% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Akamai Technologies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • AKAM's revenue growth has slightly outpaced the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AKAM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.39, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 41.66% and other important driving factors, this stock has surged by 37.01% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AKAM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AKAMAI TECHNOLOGIES INC has improved earnings per share by 41.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AKAMAI TECHNOLOGIES INC increased its bottom line by earning $1.13 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($1.96 versus $1.13).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Internet Software & Services industry average. The net income increased by 39.9% when compared to the same quarter one year prior, rising from $44.24 million to $61.90 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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