The U.S. stock markets have given back all their gains year-to-date. While this situation is not quite so fun for buy-and-hold investors, it presents excellent opportunities for stock portfolio investors who have cash to invest. The markets may be bottoming now, which would naturally be followed by a sideways trading pattern before any big market rebound.
In January 2012, when F5 Networks was at $120.27, I wrote, "An aggressive growth investor or trader could buy this stock now for a retracement to its highs, representing a 20% gain if the stock follows through on the upside, and continued long-term growth."
The stock then promptly rose to $139. It has now corrected with the general stock markets, and looks to be at support levels. This is a prime time to buy volatile aggressive growth stocks so as to catch the rebound, for traders and long-term holds.
Let's review F5 Networks (FFIV, $97.31) to make sure the fundamentals remain intact and attractive for investors.
F5 Networks “is a provider of application delivery networking (ADN) technology that optimizes the delivery of network-based applications and the security, performance and availability of servers, data storage devices and other network resources," reports Morgan Stanley Research. For the non-techies in the audience, this is a communications equipment company within the information technology sector. Competitors include Digi International (DGII), MRV Communications (MRVC), and NETGEAR Inc. (NTGR).
F5 revenues have grown each of the last ten years. Wall Street projects earnings per share (EPS) to grow another 20%, 20% and 21% in fiscal years 2012 through 2014. (These projections have increased since I last reported on FFIV in January 2012.) EPS grew every year in the last ten years except 2008, when they were flat.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 29th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom