F5 Networks Inc. (FFIV): Today's Featured Computer Software & Services 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 Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.7%. By the end of trading, F5 Networks rose $2.15 (2.9%) to $77.52 on light volume. Throughout the day, 1,324,489 shares of F5 Networks exchanged hands as compared to its average daily volume of 1,788,500 shares. The stock ranged in a price between $75.10-$77.55 after having opened the day at $75.50 as compared to the previous trading day's close of $75.37. Other companies within the Computer Software & Services industry that increased today were: icad ( ICAD), up 15.9%, Helios and Matheson Information Technology ( HMNY), up 13.8%, TSR ( TSRI), up 10.7% and Active Network ( ACTV), up 9.0%.
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F5 Networks, Inc. provides application delivery networking technology that secures and optimizes the delivery of network-based applications, and the security, performance, and availability of servers and other network resources. F5 Networks has a market cap of $5.9 billion and is part of the technology sector. The company has a P/E ratio of 21.0, above the S&P 500 P/E ratio of 17.7. Shares are down 23.3% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate F5 Networks a buy, no analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates F5 Networks as a hold. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

On the negative front, Attunity ( ATTU), down 7.7%, China Mobile Games and Entertainment Group ( CMGE), down 5.2%, Guidance Software ( GUID), down 5.0% and Chyron Corporation ( CHYR), down 4.8% , were all laggards within the computer software & services industry with Activision Blizzard ( ATVI) being today's computer software & services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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