Today's Momo Momentum Stock Is 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 momo momentum 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 $242.7 million.
  • JNPR has a PE ratio of 21.4.
  • JNPR is currently in the upper 30% of its 1-year range.
  • JNPR is in the upper 25% of its 20-day range.
  • JNPR is in the upper 35% of its 5-day range.
  • JNPR is currently trading above yesterday's high.
  • JNPR has experienced a gap between today's open and yesterday's close of 1%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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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 21.4. Currently there are 11 analysts that rate Juniper Networks a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for Juniper Networks has been 9.7 million shares per day over the past 30 days. Juniper has a market cap of $13.9 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 2.25 and a short float of 4.3% with 2.11 days to cover. Shares are up 21.7% year-to-date as of the close of trading on Wednesday.

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 buy. 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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:
  • JNPR's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 11.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • JNPR's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, JNPR has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • JUNIPER NETWORKS INC reported significant earnings per share improvement 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 ($1.43 versus $0.86).
  • 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 58.6% when compared to the same quarter one year prior, rising from $95.70 million to $151.80 million.
  • Net operating cash flow has significantly increased by 152.14% to $390.40 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 19.40%.

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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