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

Zacks Equity Research
·2-min read

In the latest trading session, Fastly (FSLY) closed at $70.03, marking a -1.38% move from the previous day. This change lagged the S&P 500's daily gain of 0.36%.

Prior to today's trading, shares of the cloud software developer had lost 4.48% over the past month. This has lagged the Computer and Technology sector's gain of 9.06% and the S&P 500's gain of 5.21% in that time.

Investors will be hoping for strength from FSLY as it approaches its next earnings release, which is expected to be May 5, 2021. The company is expected to report EPS of -$0.11, down 83.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $85.15 million, up 35.32% from the prior-year quarter.

FSLY's full-year Zacks Consensus Estimates are calling for earnings of -$0.40 per share and revenue of $382.18 million. These results would represent year-over-year changes of -122.22% and +31.39%, respectively.

It is also important to note the recent changes to analyst estimates for FSLY. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. FSLY is currently sporting a Zacks Rank of #5 (Strong Sell).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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