Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $174.6 million.
- JNPR has traded 3.6 million shares today.
- JNPR traded in a range 205.5% of the normal price range with a price range of $0.90.
- JNPR traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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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. JNPR has a PE ratio of 28.0. Currently there are 13 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 7.2 million shares per day over the past 30 days. Juniper has a market cap of $12.0 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 2.19 and a short float of 3.2% with 1.06 days to cover. Shares are up 12.8% year-to-date as of the close of trading on Thursday.
rates Juniper Networks as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.3%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although JNPR's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average. To add to this, JNPR has a quick ratio of 2.46, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.79% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- JUNIPER NETWORKS INC has improved earnings per share by 22.2% 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 ($1.62 versus $0.86).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Communications Equipment industry average, but is less than that of the S&P 500. The net income increased by 21.5% when compared to the same quarter one year prior, going from $91.00 million to $110.60 million.
- You can view the full Juniper Networks Ratings Report.