Robert DeFrancesco’s

TechStockProspector.com
January 14, 2011

More Upside for F5 Networks (FFIV)?

Last year was a good one for shares of the three top next-generation networking
companies. Acme Packet, F5 Networks and Riverbed Technology all saw their
stock prices jump sharply, with an average gain of 245%. Acme Packet came out on
top in 2010 (+383%) and the stock is already up 15% so far this year.

For 2011, analysts on average expect these three to turn in per-share earnings
growth of at least 35%. No surprise, the stocks aren’t cheap. But F5 stands out on a
relative basis, with a P/E in line with the expected growth rate.

Next-Gen Networking Plays

Recent 52- 2010 YTD Est. High Est. 2
price Week Return Return 2011 2011 EPS EPS
High EPS Est. Grow
Rate
Acme Packet (APKT) $61.31 $62.96 383% 15.3% $1.04 $1.22 35%
F5 Networks (FFIV)* 143.78 145.76 146 10.5 3.52 4.40 40
Riverbed Technology (RVBD) 39.45 39.94 206 12.2 0.77 0.87 35
*Fiscal year ends September.

Rob DeFrancesco, editor of Tech-Stock Prospector, is a former senior writer

with Louis Rukeyser’s Wall Street.

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