F5 saw an improvement in its IBD SmartSelect Composite Rating Tuesday, from 94 to 96.
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The top-performing stocks tend to have a 95 or better grade as they start a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
F5 is currently extended beyond a proper buy zone after clearing the 205.92 entry in a flat base.
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One weak spot is the company's 77 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of C- shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
In Q1, the company posted 12% EPS growth. That means it's now generated two straight quarters of rising EPS gains. Revenue growth increased 11%, up from 6% in the prior quarter. The company has now posted accelerating growth in each of the last three quarters.
F5 earns the No. 1 rank among its peers in the Internet-Networking Solutions industry group. Credo Tech Group and GDS Holdings ADR are also among the group's highest-rated stocks.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
