Juniper Networks, Staples: Ratings Changes

Juniper Networks, Staples and Leucadia National had their ratings changed at TheStreet.com.
By Jake Lynch ,

BOSTON (TheStreet) --Juniper Networks (JNPR) - Get Report, Staples (SPLS) and Leucadia National (LUK) had their stock ratings changed by TheStreet's quantitative model.

3.

The model upgraded multi-sector holding company

Leucadia National

to "hold."

The numbers

: Leucadia's fourth-quarter loss narrowed to $91 million, or 38 cents a share, from an impairment-related loss of $2.7 billion, or $11.72, a year earlier. Revenue soared 91% to $303 million. Leucadia's operating margin climbed to 9.4%. It holds $239 million of cash and $2 billion of debt.

The stock

: Leucadia National has more than doubled during the past year, outpacing U.S. indices. The stock sells for a price-to-earnings ratio of 12, a 42% discount to the industry average. It is expensive when considering book value and sales.

2.

The model downgraded communications-equipment maker

Juniper Networks

to "hold."

The numbers

: Fourth-quarter profit tumbled 83% to $23 million, or 4 cents a share, as revenue ascended 1.9% to $941 million. Juniper's operating margin declined from 22% to 21%. Its balance sheet stores $2.2 billion of cash and no debt.

The stock

: Juniper Networks has more than doubled in the past year, beating major benchmarks. The stock trades at a price-to-projected-earnings ratio of 20, a premium to peers. Its PEG ratio, a measure of value relative to growth expectations, is low at 0.3. A PEG ratio below 1 implies cheap shares.

1.

The model downgraded office-products seller

Staples

to "hold."

The numbers

: Fourth-quarter profit decreased 18% to $234 million, or 32 cents a share, as revenue ascended 3.8% to $6.4 billion. The operating margin increased marginally to 7.6%. Staples holds $1.4 billion of cash and $2.6 billion of debt.

The stock

: Staples has advanced 58% in the past 12 months, trailing U.S. indices. The stock sells for a price-to-projected-earnings ratio of 14, a 17% discount to its peer group average. A PEG ratio of 0.8 reflects a discount relative to growth expectations.

-- Reported by Jake Lynch in Boston.

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