In the latest trading session, Limelight Networks (LLNW) closed at $6.33, marking a -0.94% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.84%, and the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the network services company had gained 0.95% over the past month. This has outpaced the Computer and Technology sector's loss of 2.66% and the S&P 500's loss of 1.96% in that time.
LLNW will be looking to display strength as it nears its next earnings release. In that report, analysts expect LLNW to post earnings of $0.02 per share. This would mark year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $58.81 million, up 14.6% from the year-ago period.
LLNW's full-year Zacks Consensus Estimates are calling for earnings of $0.08 per share and revenue of $237 million. These results would represent year-over-year changes of +500% and +18.13%, respectively.
Investors should also note any recent changes to analyst estimates for LLNW. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. LLNW currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, LLNW is holding a Forward P/E ratio of 83.35. For comparison, its industry has an average Forward P/E of 38.8, which means LLNW is trading at a premium to the group.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.
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