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A10 Networks (ATEN) Dips More Than Broader Markets: What You Should Know

A10 Networks (ATEN) closed the most recent trading day at $13.05, moving -0.68% from the previous trading session. This change lagged the S&P 500's 0.41% loss on the day. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.

Heading into today, shares of the provider of networking technologies had lost 15.5% over the past month, lagging the Computer and Technology sector's loss of 9.08% and the S&P 500's loss of 5.13% in that time.

A10 Networks will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.18, up 5.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $69.96 million, up 7.04% from the year-ago period.

ATEN's full-year Zacks Consensus Estimates are calling for earnings of $0.69 per share and revenue of $275.08 million. These results would represent year-over-year changes of +9.52% and +10.01%, respectively.

Any recent changes to analyst estimates for A10 Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. A10 Networks is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note A10 Networks's current valuation metrics, including its Forward P/E ratio of 19.04. Its industry sports an average Forward P/E of 18.66, so we one might conclude that A10 Networks is trading at a premium comparatively.

The Communication - Network Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ATEN in the coming trading sessions, be sure to utilize Zacks.com.

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