F5 Networks Inc. (FFIV): Today's Featured Technology Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

F5 Networks ( FFIV) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.7%. By the end of trading, F5 Networks rose $2.57 (2.9%) to $90.05 on light volume. Throughout the day, 1.2 million shares of F5 Networks exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $87.51-$90.20 after having opened the day at $87.63 as compared to the previous trading day's close of $87.48. Other companies within the Technology sector that increased today were: Memsic ( MEMS), up 71.8%, China Digital TV ( STV), up 49.7%, Spire Corporation ( SPIR), up 22.5%, and eOn Communications Corporation ( EONC), up 17.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

F5 Networks, Inc. provides application delivery networking technology that optimizes the delivery of network-based applications, and the security, performance, and availability of servers, data storage devices, and other network resources in the Americas, EMEA, Japan, and the Asia Pacific. F5 Networks has a market cap of $6.96 billion and is part of the computer software & services industry. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are down 17.6% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate F5 Networks a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates F5 Networks as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.

null

More from Markets

Asia Markets Fall on Latest Tariff Threats From Trump

Asia Markets Fall on Latest Tariff Threats From Trump

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries