Juniper Networks (JNPR): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Juniper Networks as such a stock due to the following factors:
- JNPR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $138.5 million.
- JNPR has traded 1.2 million shares today.
- JNPR is trading at 5.08 times the normal volume for the stock at this time of day.
- JNPR is trading at a new low 5.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on JNPR:
Juniper Networks, Inc. designs, develops, and sells high-performance network products and services worldwide. The stock currently has a dividend yield of 1.3%. Currently there are 9 analysts that rate Juniper Networks a buy, no analysts rate it a sell, and 12 rate it a hold.
The average volume for Juniper Networks has been 5.4 million shares per day over the past 30 days. Juniper has a market cap of $12.1 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.05 and a short float of 2.1% with 1.83 days to cover. Shares are up 42.1% year-to-date as of the close of trading on Friday.
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Analysis:
rates Juniper Networks as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 121.73% and other important driving factors, this stock has surged by 46.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JNPR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 90.8% when compared to the same quarter one year prior, rising from $103.60 million to $197.70 million.
- Net operating cash flow has significantly increased by 473.24% to $293.00 million when compared to the same quarter last year. In addition, JUNIPER NETWORKS INC has also vastly surpassed the industry average cash flow growth rate of 9.34%.
- JUNIPER NETWORKS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JUNIPER NETWORKS INC swung to a loss, reporting -$0.90 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus -$0.90).
- You can view the full Juniper Networks Ratings Report.
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