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F5 Networks (FFIV) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, F5 Networks (FFIV - Free Report) closed at $229.61, marking a -1.12% move from the previous day. This change lagged the S&P 500's 0.31% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.48%.

Prior to today's trading, shares of the computer networking company had gained 2.94% over the past month. This has outpaced the Computer and Technology sector's loss of 0.76% and the S&P 500's loss of 0.04% in that time.

Investors will be hoping for strength from F5 Networks as it approaches its next earnings release. In that report, analysts expect F5 Networks to post earnings of $2.78 per share. This would mark year-over-year growth of 7.34%. Our most recent consensus estimate is calling for quarterly revenue of $677.54 million, up 8.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.72 per share and revenue of $2.82 billion. These totals would mark changes of +8.42% and +8.4%, respectively, from last year.

Any recent changes to analyst estimates for F5 Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. F5 Networks is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, F5 Networks is holding a Forward P/E ratio of 19.81. This valuation marks a discount compared to its industry's average Forward P/E of 63.41.

We can also see that FFIV currently has a PEG ratio of 1.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 3.9 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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