Post-Market Laggard: Juniper Networks (JNPR)

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 $92.9 million.
  • JNPR is down 3.7% 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 25.8. Currently there are 7 analysts that rate Juniper Networks a buy, 1 analyst rates it a sell, and 14 rate it a hold.

The average volume for Juniper Networks has been 5.5 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 2.43 and a short float of 2.3% with 1.83 days to cover. Shares are down 3.1% year to date as of the close of trading on Tuesday.

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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 stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

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 489.4% when compared to the same quarter one year prior, rising from $16.81 million to $99.10 million.
  • JNPR's revenue growth trails the industry average of 27.8%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 reported lower earnings of $0.36 versus $0.79 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.36).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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 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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