Is F5 Stock Outperforming the Nasdaq?

Based in Seattle, Washington, F5, Inc. (FFIV) provides multi-cloud application security and delivery solutions. Valued at a market cap of 13.1 billion, the company offers products and services to manage Internet traffic. It partners with various public cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

Companies worth $10 billion or more are generally labeled as “large-cap” stocks, and F5 fits right into that category. The company specializes in application security, multi-cloud management, online fraud prevention, application delivery networking, and network security solutions. It operates in more than 43 countries and has over 75 offices worldwide.

Shares of FFIV are trading 1.6% below their 52-week high of $223.74, which they hit in the last trading session. Shares of the tech company have gained 29.8% over the past three months, significantly surpassing the broader Nasdaq Composite’s ($NASX) 2.2% return over the same time frame.

In the longer term, FFIV stock is up 23% on a YTD basis, surpassing NASX’s 20.6% gains. Moreover, shares of FFIV have gained 38.9% over the past 52 weeks, outperforming NASX’s 36.4% returns over the same time frame.

FFIV has been trading above its 200-day and 50-day moving average since late July to confirm its bullish trend.

Shares of FFIV closed up nearly 13% following its Q3 earnings release on Jul. 29. The company reported adjusted earnings of $3.36 per share, which surpassed the Wall Street estimates of $2.97. Its revenues of $695.5 million in the period also topped consensus estimates of $686.6 million. For the next quarter, F5 expects its EPS to be between $3.38 and $3.50, with revenues in the range of $720 million to $740 million.

FFIV has also outpaced its rival, Cisco Systems, Inc. (CSCO), which declined 1.8% over the past 52 weeks.

Despite FFIV’s outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from 13 analysts in coverage, and as of writing, the stock is trading above its mean price target of $201.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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