Trade-Ideas: F5 Networks (FFIV) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified F5 Networks (FFIV) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

F5 Networks

(

FFIV

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified F5 Networks as such a stock due to the following factors:

  • FFIV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $96.4 million.
  • FFIV is up 4.2% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in FFIV with the Ticky from Trade-Ideas. See the FREE profile for FFIV NOW at Trade-Ideas

More details on FFIV:

F5 Networks, Inc. develops, markets, and sells application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems. FFIV has a PE ratio of 23. Currently there are 4 analysts that rate F5 Networks a buy, 1 analyst rates it a sell, and 21 rate it a hold.

The average volume for F5 Networks has been 878,800 shares per day over the past 30 days. F5 has a market cap of $7.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.09 and a short float of 8.5% with 6.78 days to cover. Shares are up 24.4% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates F5 Networks as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • FFIV's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • FFIV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, F5 NETWORKS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for F5 NETWORKS INC is currently very high, coming in at 85.73%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.59% trails the industry average.
  • F5 NETWORKS INC's earnings per share declined by 5.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, F5 NETWORKS INC increased its bottom line by earning $5.04 versus $4.09 in the prior year. This year, the market expects an improvement in earnings ($7.11 versus $5.04).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...