This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Network Stocks: 2 Buys, 2 Sells

Stocks in this article: CSCO JNPR FFIV HPQ AAPL

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)

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)

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,897.40 +92.60 0.52%
S&P 500 2,069.91 -0.74 -0.04%
NASDAQ 4,765.0150 -0.3650 -0.01%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs