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Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal 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 $95.0 million.
- JNPR has traded 6.4 million shares today.
- JNPR is trading at 5.43 times the normal volume for the stock at this time of day.
- JNPR crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 products and services for high-performance networks worldwide. The company operates in two segments, Platform Systems Division and Software Solutions Division. The stock currently has a dividend yield of 1.8%. JNPR has a PE ratio of 18.3. Currently there are 8 analysts that rate Juniper Networks a buy, no analysts rate it a sell, and 16 rate it a hold.
The average volume for Juniper Networks has been 5.2 million shares per day over the past 30 days. Juniper has a market cap of $9.6 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.01 and a short float of 1.6% with 1.97 days to cover. Shares are down 2.2% year-to-date as of the close of trading on Tuesday.
rates Juniper Networks as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- JUNIPER NETWORKS INC has improved earnings per share by 21.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JUNIPER NETWORKS INC increased its bottom line by earning $0.86 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.36 versus $0.86).
- Although JNPR's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average. To add to this, JNPR has a quick ratio of 1.75, 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 68.22%. 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 9.20% significantly trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.7%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Juniper Networks Ratings Report.