Markets

Fastly (FSLY) Stock Sinks As Market Gains: What You Should Know

Fastly (FSLY) closed at $81.87 in the latest trading session, marking a -1.6% move from the prior day. This change lagged the S&P 500's daily gain of 1.34%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 0.94%.

Heading into today, shares of the cloud software developer had gained 60.06% over the past month, outpacing the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 3.92% in that time.

Investors will be hoping for strength from FSLY as it approaches its next earnings release, which is expected to be August 5, 2020. The company is expected to report EPS of -$0.01, up 93.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $71.65 million, up 55.19% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.13 per share and revenue of $288.52 million, which would represent changes of +75% and +43.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FSLY. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 2.28% higher. FSLY currently has a Zacks Rank of #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow FSLY in the coming trading sessions, be sure to utilize Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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