by Sam Collins | October 31, 2011 12:59 am
Akamai Technologies Inc (NASDAQ:AKAM) is down about 35% so far this year, but may be heating up again. The last time that I reviewed this tech stock was a “Trade of the Day” way back in September 2010.
Click to EnlargeAkamai is a developer of solutions designed to accelerate and improve the delivery of internet content. Back in fall 2010, AKAM stock had more than doubled in one year and with a price/earnings ratio of 59 times. It appeared time to cash in this high performer at over $50 and nail down a profit.
Now with the stock at almost half the sale price and both revenues and profits increasing, it appears time to buy it back. Analysts just raised their earnings forecast for 2012 to $1.25 from $1.20 and 2013 to $1.50 from $1.45. Their price target is $35. Technically the stock has broken above a significant resistance line at $25 on a break-away-gap, a very bullish sign.
Traders will want to jump on AKAM for a quick pop to its 200-day moving average at $32.
Get Sam Collins’ market commentary: Only a bonkers bull would chase this market
Get Serge Berger’s market commentary: Charts show risk is rapidly rising for investors
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