F5 Networks (FFIV) closed at $229.32 in the latest trading session, marking a -0.31% move from the prior day. This move was narrower than the S&P 500’s daily loss of 0.75%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the computer networking company had lost 0.41% over the past month, outpacing the Computer and Technology sector’s loss of 2.28% and lagging the S&P 500’s loss of 0.13% in that time.
F5 Networks will be looking to display strength as it nears its next earnings release. On that day, F5 Networks is projected to report earnings of $2.78 per share, which would represent year-over-year growth of 7.34%. 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.
Investors might also notice recent changes to analyst estimates for F5 Networks. These revisions help to show the ever-changing nature of near-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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. F5 Networks is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, F5 Networks is currently trading at a Forward P/E ratio of 19.63. This represents a discount compared to its industry’s average Forward P/E of 61.31.
Meanwhile, FFIV’s PEG ratio is currently 1.66. 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 3.74 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
