Why Fastly (FSLY) Outpaced the Stock Market Today

Fastly (FSLY) ended the recent trading session at $20.62, demonstrating a +1.48% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.29%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.43%.

Shares of the cloud software developer have appreciated by 9.84% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08%.

The investment community will be closely monitoring the performance of Fastly in its forthcoming earnings report. The company is scheduled to release its earnings on February 14, 2024. It is anticipated that the company will report an EPS of -$0.02, marking a 75% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $139.25 million, indicating a 16.7% increase compared to the same quarter of the previous year.

Investors should also note any recent changes to analyst estimates for Fastly. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.28% fall in the Zacks Consensus EPS estimate. Fastly presently features a Zacks Rank of #4 (Sell).

Looking at its valuation, Fastly is holding a Forward P/E ratio of 812.8. This indicates a premium in contrast to its industry's Forward P/E of 34.92.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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