Back to top

Image: Bigstock

F5 Networks (FFIV) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

F5 Networks (FFIV - Free Report) closed at $230.28 in the latest trading session, marking a -1.17% move from the prior day. This change lagged the S&P 500's 1.14% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.

Heading into today, shares of the computer networking company had gained 0.46% over the past month, outpacing the Computer and Technology sector's loss of 4.36% and the S&P 500's loss of 1.37% in that time.

Investors will be hoping for strength from F5 Networks as it approaches its next earnings release. The company is expected to report EPS of $2.78, up 7.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $677.54 million, up 8.47% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.72 per share and revenue of $2.82 billion, which would represent changes of +8.42% and +8.4%, respectively, from the prior year.

Any recent changes to analyst estimates for F5 Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. 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 19.88. This represents a discount compared to its industry's average Forward P/E of 63.5.

Also, we should mention that FFIV 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. FFIV's industry had an average PEG ratio of 3.66 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

F5, Inc. (FFIV) - free report >>

Published in