4-Star Stocks Poised to Pop: Akamai
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Internet content delivery specialist Akamai Technologies (NAS: AKAM) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Akamai's business and see what CAPS investors are saying about the stock right now.
Cambridge, Mass. (1998)
Internet software and services
CEO Paul Sagan (since 2005)
CFO J.D. Sherman (since 2006)
Return on Equity (Average, Past 3 Years)
$497.2 million / $0
AT&T (NYS: T)
Limelight Networks (NAS: LLNW)
Level 3 Communications (NAS: LVLT)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Just last week, beadnell tapped Akamai as a cheap way to go for growth: "The P/E is no longer stratospheric. Web video is only going to grow, so a rising tide will float all content delivery networks."
Akamai even boasts a robust three-year average operating margin of 28.7%. That's higher than that of rival AT&T (17%), let alone Limelight and Level 3, which sport a negative average operating margin of -17.1% and -0.4%, respectively.
Sean Williams expands on the outperform argument:
I personally added Akamai to my own portfolio ... after the company guided earnings down yet again. Consolidation hype is on the rise and the company continues to pace itself at a 13% growth rate, nothing to sneeze at with a forward P/E of also 13. If you want more of my thoughts on AKAM, you can check them out here.
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At the time this article was published We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.