F5NASDAQ: FFIV

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F5 (FFIV) reported earnings 30 days ago. What's next for the stock?

Given its better prospects, we believe Verisign stock (NASDAQ NASDAQ : VRSN), a domain name provider, is a better pick than its industry peer, F5 Networks stock (NASDAQ: FFIV), an application security and cloud networking company. Investors have assigned a higher valuation multiple of 11.6x revenues for Verisign, compared to 3.7x revenues for F5, due to Verisign's superior profitability and solid financial position.

F5's (FFIV) earnings for the second quarter of fiscal year 2024 were boosted by an increased gross margin and careful management of operating expenses.

F5 Networks reported earnings of $2.91 per share for the quarter, surpassing the Zacks Consensus Estimate of $2.88 per share and an increase from $2.53 per share in the previous year.

Despite some short-term obstacles, F5's solid fundamentals, growth strategies, and position in the networking and cybersecurity industries make it an attractive option for investors looking to invest in these sectors.

F5 (FFIV) has a strong track record of exceeding earnings expectations and currently has the right mix of factors to potentially beat expectations in its upcoming quarterly report.

For value, growth, or momentum investors, identifying strong stocks is made simpler with the Zacks Style Scores, a key component of the Zacks Premium research service.

Investors interested in stocks in the Internet - Software industry may want to consider StoneCo Ltd. (STNE) or F5 Networks (FFIV).