Trade-Ideas: Juniper Networks (JNPR) Is Today's Post-Market Laggard Stock

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 Juniper Networks ( JNPR) as a post-market laggard 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 $84.2 million.
  • JNPR is down 2.5% today from today's close.

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More details on JNPR:

Juniper Networks, Inc. designs, develops, and sells products and services that provide network infrastructure for networking requirements of service providers, enterprises, governments, and research and public sector organizations worldwide. JNPR has a PE ratio of 36.9. Currently there are 6 analysts that rate Juniper Networks a buy, 1 analyst rates it a sell, and 16 rate it a hold.

The average volume for Juniper Networks has been 5.0 million shares per day over the past 30 days. Juniper has a market cap of $10.9 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 2.43 and a short float of 1.9% with 1.89 days to cover. Shares are up 8.9% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Juniper Networks as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • 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 69.6% when compared to the same quarter one year prior, rising from $57.72 million to $97.90 million.
  • JNPR's revenue growth trails the industry average of 30.0%. Since the same quarter one year prior, revenues slightly increased by 7.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • The gross profit margin for JUNIPER NETWORKS INC is rather high; currently it is at 66.24%. Regardless of JNPR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JNPR's net profit margin of 8.50% is significantly lower than the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Communications Equipment industry and the overall market, JUNIPER NETWORKS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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