| Stock (Symbol) | Stock Price | |
F5 Networks (FFIV) |
$120 |
|
| Data is as of | Expected to Report | Sector |
February 1, 2012 |
Apr 18 |
Technology |
| Sharek’s Take | ||
 F5 Networks (FFIV) is at the top of its trading range, and I don’t think there’s enough juice to break out. FFIV’s P/E is 27 and profit growth is around/expected to be around 20%. The company only beat estimates by a couple of cents last quarter, and had been beat by twice that amount the previous two quarters.I would recommend investors sell half their position in this stock. I think FFIV has a bright future, but it might not move higher until late 2012 or early 2013. |
||
| One-Year Chart | ||
 The one-year chart shows the the peak I’m talking about. Seems like FFIV is ready to break past $120. But with profit growth slowing from 34% to 17% last quarter, there’s not enough juice to move the P/E up from 27. Estimates show 20% and 18% growth coming the next two quarters, and since FFIV isn’t beating by much (or upping by much) this stock doesn’t have the power to jump. |
||
| Earnings Table | ||
 Profit growth was 17% last quarter. Revenue growth has slowed a bit recently. Sales growth was 20% last quarter, 24% 2QtrsAgo, 26% 3QtrsAgo. FFIV just ended its streak of record profits each quarter. The $1.03 it made LastQtr was less than the $1.06 it made 2QtrsAgo. FFIV beat the street by only 2 cents after beating by 7 cents and 6 cents the prior two quarters. I don’t think this stock is timely. Annual Profit Estimates did increase, but not by much. Quarterly estimates are good-not-great. They didn’t increase a whole lot either. |
||
| Fair Value | ||
 FFIV is selling 12% below its 2012 Fair Value. Upside through 2013 is a solid 32%. |
||
| Ten-Year Chart | ||
 FFIV made its big move in 2012 when it was one of the top stocks in the NASDAQ. in 2011 the stock digested its gains and now I think another base will be built this year. The recent action in the ten-year chart doesn’t look good — the moves are too sharp. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
17 of 20 |
The future for cloud computing is bright for the next three-to-five years, but growth doesn’t look to accelerate in 2012. This stock’s good for the long-term but doesn’t have the juice to break out in the short-term. FFIV is the 17th best stock in the 20 stock Growth Portfolio Power Rankings. FFIV doesn’t have what it takes for the Aggressive Growth Portfolio at this time. |
|
Aggressive Growth Portfolio
N/A |
||
