Juniper Networks Inc. Stock Hold Recommendation Reiterated (JNPR)
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- Despite its growing revenue, the company underperformed as compared with the industry average of 2.5%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although JNPR's debt-to-equity ratio of 0.14 is very low, it is currently higher than that of the industry average. To add to this, JNPR has a quick ratio of 2.36, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for JUNIPER NETWORKS INC is rather high; currently it is at 69.10%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, JNPR's net profit margin of 1.50% significantly trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Communications Equipment industry and the overall market, JUNIPER NETWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, JNPR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
--Written by a member of TheStreet Ratings Staff. It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
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