This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Network Stocks: 2 Buys, 2 Sells

I would be a seller here. The company is heading in the opposite direction and investors would be wise to stay away, at least until management can demonstrate that the company has a solid plan for the future. On the other hand, should the stock drop by another 20%, I'm willing to reconsider.

F5 (FFIV - Get Report)

F5's recent earnings miss made investors uncomfortable. Although 6% profit growth in a tough macro climate should be considered decent, it fell short of analysts' estimates of $1.18 per share on revenue of $366.1 million. Essentially, although F5 grew revenue and EPS by 15% and 6%, respectively, the company missed on both its top and bottom lines.

The good news is that it has some catalysts on the horizon, including a new product cycle that starts this year. F5 is still a solid company with an excellent management team. The company continues to log quarterly performances that speak to its sound business. But this continues to be a story about valuation.

With guidance having come down and revenue growing at a slower rate, the prudent play here would be to wait a couple of more quarters to see how IT spending rebounds. The risk in the stock is still too great.

Hewlett-Packard (HPQ - Get Report)

Beleaguered tech giant Hewlett-Packard is just too beaten up to think that things can get worse. Its challenge is to figure out ways to restore the confidence of Wall Street. Though not an easy task at this point, it's not impossible. To that end it has been working hard to prove that itdoes not need to be Apple in order to survive. But unfortunately, it has not worked.

At this point I'm not so sure if CEO, Meg Whitman is still the right person for the job. Though HP was a mess when she took over, it is tough to dismiss that the company's stock has lost 45% since she took over just a little over a year ago. While a lot of that can be attributed to the surge of mobile devices that has affected its PC business, HP has had plenty of opportunities to stop the bleeding.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CSCO $29.26 0.00%
FFIV $126.77 0.00%
HPQ $34.76 0.00%
JNPR $27.60 0.00%
AAPL $132.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs