Stock of the Day

March 9, 2021

F5 (FFIV)

$407.13
+$12.89 (+3.3%)
Market Cap: $22.32B

About F5

F5, Inc. provides multi-cloud application security and delivery solutions in the United States, Europe, the Middle East, Africa, and the Asia Pacific region. The company's distributed cloud services enable its customers to deploy, secure, and operate applications in any architecture, from on-premises to the public cloud. It offers unified, security, networking, and application management solutions, such as web app and API protection; multi-cloud networking; application delivery and deployment; domain name system; content delivery network; and application deployment and orchestration. The company also provides application security and delivery products, including NGINX Plus; NGINX Management Suite; NGINX Ingress Controller; NGINX App Protect; BIG-IP Packaged Software; and BIG-IP Systems. In addition, it provides a range of professional services, including maintenance, consulting, training, and other technical support services. F5, Inc. sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, systems integrators, and other indirect channel partners. It has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The company was formerly known as F5 Networks, Inc. and changed its name to F5, Inc. in November 2021. F5, Inc. was incorporated in 1996 and is headquartered in Seattle, Washington.

Today's Trend

F5, Inc. (NASDAQ: FFIV) shares have decreased despite a generally positive update to the company’s earnings outlook. The revisions support F5’s long-term earnings growth story, but the analyst’s unchanged Hold rating may be limiting the immediate upside.

  • Zacks raised earnings estimates across multiple periods. The firm increased its FY2026 EPS forecast to $13.59 from $12.80, FY2027 to $13.77 from $13.02, and FY2028 to $16.16 from $13.48. It also lifted estimates for several individual quarters, including Q4 2026, Q1 and Q3 2027, and Q1 through Q3 2028. The revisions indicate improving expectations for F5’s profitability and are above the current-year consensus estimate of $13.53. Zacks Research Forecasts F5's Q2 Earnings
  • The estimate increases are concentrated in future periods. Although Zacks raised its Q2 2028 EPS forecast to $3.79 from $3.22 and its Q3 2028 forecast to $4.17 from $3.46, these revisions may have less impact on near-term trading than changes to current-quarter guidance or results.
  • Zacks maintained a Hold rating. The lack of an upgrade may temper investor enthusiasm, particularly after F5’s strong run toward its 52-week high. At a valuation of roughly 32 times earnings, investors may be looking for stronger near-term catalysts before assigning the stock a higher multiple.

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