EMC Corporation (EMC), Cisco Systems, Inc. (CSCO): Key Drivers Behind F5 Networks, Inc. (FFIV) Higher Valuation

Favorable Trends

Ever Increasing Internet Traffic – Internet penetration has grown on an exponential scale in the past decade. Going forward, the global IP is expected to increase even more rapidly. The enterprise internet traffic is also expected to speed up as video communication is getting more and more popular. Large global organizations feel a growing need to communicate through the internet medium as it’s highly cost effective. The increasing internet adoption gives the company a highly positive outlook.

Growing popularity of Cloud Services and Data Virtualization – As organizations grow into global phenomenon, they will then turn to third party cloud services for data storage. Large amounts of data can be stored at a much lower cost with an easier global accessibility. According to Research firm Forrester, by 2020 size of the cloud computing market will reach a jaw dropping $241 billion from $41 billion during 2011.

All trends point at an upward rally in the stock price towards its previous levels of $130/share; however, investors must have a long-term horizon. The fundamentals of the company are robust and the industry trends look favorable.

The article Key Drivers Behind F5 Networks Higher Valuation originally appeared on Fool.com and is written by Ashit Gulati.

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