Image Source: Unsplash

I like F5, Inc. (FFIV). It offers a blend of conservative and aggressive elements in one position, which I think is befitting the questionable spot we find ourselves with market conditions, says Steve Reitmeister, editor of Reitmeister Total Return.

The aggressive part is that this is a technology company focused on cloud security and delivery solutions. The conservative part is that this is a large-cap company that is kind of at the utility end of the technology space. That provides more stable earnings, but more modest growth.

The fact that shares were up recently while the overall market was sliding lower can give you a sense of its defensive qualities that I would like in the days ahead.

The POWR Ratings also smile on these shares, with them being in the top 2% of all stocks (pointing to an A rating overall). Value is pretty impressive, in the top 10%. But what really stands out is the top 2% for Quality, which is the most beneficial in finding stocks likely to outperform.

F5 Inc. (FFIV)

In the long run, this company is likely to produce around $14 in EPS next year, yet shares have been trading under $170. That is less than a 12 PE in a market with an average PE over 20. This explains the slew of analyst targets above $200, including a Street-high $220 from the 5 Star analyst at Needham. That gives us ample reason to buy shares.

Long story short, I want F5, Inc. in conjunction with more defensive/conservative positions to help shore up the portfolio, as I think market downside makes more sense than upside in the near-term. Gladly, F5, Inc. also offers attractive upside potential for when market conditions improve.

My recommended action would be to consider buying shares of F5, Inc.

About the Author

Steve Reitmeister brings over 40 years of experience to help individual investors find outperformance. For the better part of the past two decades, he was the editor-in-chief of Zacks.com, where millions of investors enjoyed his timely market insights.

Mr. Reitmeister's commentary has also been featured on other leading investment websites including Yahoo! Finance, Seeking Alpha, CNNMoney, and MarketWatch. The best way to enjoy his insights and stock picks is through his Zen Investor newsletter on WallStreetZen.com. 

More By This Author: