Akamai Technologies (AKAM) –I last covered this big-cap technology stock on Sept. 11, at $62, after it flashed several powerful buy signals and appeared to be breaking from a triple-top at $62.50. However, general market volatility has prevented the stock from completing a follow-through, and it has instead retreated to a major support line.
Despite the general market condition, AKAM appears to offer excellent value at the current price. The company’s distributed computing platform handles one-third of all Internet traffic. The consensus earnings estimate is $2.35 per share for 2014 and $2.77 for 2015. Analysts’ mean price target is $68.33.
On Monday, the stock reversed up after briefly penetrating its intermediate support line at about $59. Buy AKAM at the market with a trading target of $68. A stop-loss order should be entered at $54.