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A10 Networks (ATEN) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, A10 Networks (ATEN) closed at $13.68, marking a +0.22% move from the previous day. This move lagged the S&P 500's daily gain of 1.06%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.18%.

Prior to today's trading, shares of the provider of networking technologies had lost 13.83% over the past month. This has lagged the Computer and Technology sector's loss of 4.33% and the S&P 500's loss of 1.14% in that time.

Investors will be hoping for strength from A10 Networks as it approaches its next earnings release. On that day, A10 Networks is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 5.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $69.96 million, up 7.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.69 per share and revenue of $275.08 million. These totals would mark changes of +9.52% and +10.01%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for A10 Networks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. A10 Networks is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, A10 Networks is holding a Forward P/E ratio of 19.78. This valuation marks a premium compared to its industry's average Forward P/E of 17.75.

The Communication - Network Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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A10 Networks, Inc. (ATEN) : Free Stock Analysis Report
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