A10 Networks (ATEN) Plunges More Than Broader Markets: What You Need To Know – September 6, 2022
A10 networks (ATEN – Free Report) closed the most recent trading day at $13.05, or -0.68% from the previous trading session. This change lagged the S&P 500’s 0.41% loss on the day. Meanwhile, the Dow Jones lost 0.55% and the tech-heavy Nasdaq gained 0.07%.
As today approached, shares of the networking technology provider had lost 15.5% over the past month, trailing the 9.08% loss in the IT and technology sector. technology and the 5.13% loss of the S&P 500 during this period.
A10 Networks will be looking to show some strength ahead of its next earnings release. The company is expected to post EPS of $0.18, up 5.88% from the prior year quarter. Meanwhile, Zacks consensus estimate for revenue calls for net sales of $69.96 million, up 7.04% from the prior year period.
ATEN’s full-year Zacks consensus estimates call for earnings of $0.69 per share and revenue of $275.08 million. These results would represent year-over-year variations of +9.52% and +10.01%, respectively.
Any recent changes in analyst estimates for A10 Networks should also be noted by investors. These revisions generally reflect the latest short-term trading trends, which may change frequently. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.
Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. In the past 30 days, our consensus EPS projection has remained stagnant. A10 Networks currently holds a Zacks ranking of #2 (buy).
Investors should also note A10 Networks’ 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 could conclude that A10 Networks is trading at a premium comparatively.
The Communication – Network Software industry is part of the IT and Technology sector. This group has a Zacks Industry ranking of 160, which places it in the bottom 37% of all 250+ industries.
The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
To follow ATEN in future trading sessions, be sure to use Zacks.com.