Juniper Networks (JNPR): a good buy or a value trap?

4:24 am ET, 23 Oct 2018

Juniper Networks (JNPR) shares are trading at $28.48, up 0.25%. The company is announcing its quarterly earnings results on Tuesday after the market close. What's driving Juniper Networks stock price? What's JNPR stock price forecast?

Juniper Networks produces switches, routers, and security products. Lately, the stock has performed well: in the past six months, the stock gained 18%. The shares are now available at a forward P/E ratio of 14.67, a figure that’s relatively low compared to Juniper's industry peers.

Investors are showing interest in the stock because of its attractive valuation. On the other hand, some investors worry about decelerating growth. Last quarter’s revenue fell 8% to $1.20 billion and earnings per share came at $0.48 compared to $0.57 for the same period last year.

Third-quarter results will be released after market close on October 23, 2018. Analysts expect the company to earn $0.45 per share on revenue of $1.18 billion. The Company beats analysts' estimates in the previous four quarters.

What is the sentiment towards the JNPR stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Juniper Networks, Inc. (JNPR) returned -0.83%.

Juniper Networks, Inc. (JNPR) forward P/E ratio is 14.67, and it’s low compared to its industry peers’ P/E ratios.

Juniper Networks, Inc. (JNPR) short share of float is 6.43%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Juniper Networks, Inc. (JNPR) average analyst price target ($26.66) is -2.42% below its current price ($27.32).

For the latest price and information on Juniper Networks, Inc., please visit Finstead and search for "JNPR price" or "JNPR news".

FireEye: Some Good Reasons To Buy The Stock

4:00 pm ET, 08 Feb 2018

Today after market close, Nvidia (NASDAQ: FEYE) is set to report its earnings for the last fiscal quarter.  According to Finstead Research, FireEye's price target upside is 17.83% (visit Finstead and type "FEYE upside"). 

Here are some good reasons to buy FEYE:

  • Rising cyber threats call for an increased security spend that would amount to ~$170 billion by 2020.
  • The MVX engine used by FireEye includes an exclusive hypervisor for the detection of malware threats, zero-day and advanced persistent threat (APT) attacks on a real-time basis.
  • The subscription-based cloud security services take preventive measures automatically when it comes to malware identification.  FaaS (FireEye-as-a-Service) has incorporated threat intelligence and analytics into the offering and also has a nice dashboard. 
  • Subscription-based products generate stable revenues for FireEye. They comprised 79% of the total and maintained a gross margin above 60% in the past few quarters.
  • The adoption of cost optimization helped FireEye reduce its operating expenses by $174 million. This resulted in an improvement of GAAP operating margin to -2% in the third quarter of 2017, as opposed to -14% in the third quarter of 2016.
  • The acquisition of iSIGHT Partners has enhanced FireEye's product line-up.  FireEye now offers a better intelligence-based security model to the enterprises.
  • FireEye continues to add customers (200 customers in each of the last 9 quarters).

Now, let’s look at the reasons to sell FEYE:

  • Despite its efforts through new product launches, acquisition, and cost optimization, no profit has been reported since FireEye has been listed on NASDAQ Stock Exchange, in September 2013.
  • Competitors' implementation of cybersecurity investment plans by breaking them into phases, makes FireEye’s near-term prospect less lucrative.
  • $14.6 million and $15.9 million negative operating cash flows in 2016 and first 3 quarters of 2017, respectively, continue to worry investors.
  • Strong competition from tech firms such as Cisco and Juniper is noticeable.  Those two firms, in particular, have a much larger sales force than FireEye.

Over the last year, FEYE returned +30.43%. This return is higher than Application Software industry (13.46%), Technology sector (14.82%), and S&P 500 (15.44%) returns.

Juniper Networks, Inc. (JNPR) Stock Guide

Updated at: 2:30 am ET, 18 Sep 2020

Before we start: if you're looking for JNPR stock price, you can quickly find it out by visiting Finny and typing "JNPR quote". If you're looking for a quick scoop on JNPR stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "JNPR". You'll get all this info in one place. Or you can just type "JNPR news" to get the latest stock news.

Looking to buy or sell Juniper Networks, Inc. (JNPR)? Interested in getting the full scoop on JNPR, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this JNPR stock guide, we'll address key questions about JNPR, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are JNPR earnings?
2. What is JNPR dividend?
3. What is JNPR dividend yield?
4. JNPR buy or sell? What is JNPR Finny Score?
5. What are the reasons to buy JNPR? Why should I buy JNPR stock?
6. What are the reasons to sell JNPR? Why should I sell JNPR stock?
7. What are JNPR key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are JNPR earnings?

JNPR trailing 12-month earnings per share (EPS) is $1.02.

2. What is JNPR dividend?

JNPR forward dividend is $0.80.

3. What is JNPR dividend yield?

JNPR forward dividend yield is 3.2%.

Analysis

4. JNPR buy or sell? What is JNPR Finny Score?

#{finnyScore:44}Our quantitative analysis shows 4 reasons to buy and 5 reasons to sell JNPR, resulting in Finny Score of 44.

5. What are the reasons to buy JNPR? Why should I buy JNPR stock?

Here are the reasons to buy JNPR stock:

  • CEO Rami Rahim is the right person for this position, and management has an increased level of clarity and acceptance of past underperformance.
  • R&D efforts have been refocused to fill the gaps in the product portfolio and address the market share loss.
  • Recent portfolio changes and efforts to reduce operating expenses point to top- and bottom-line improvement.
  • JNPR forward dividend yield is 3.20%, higher than the industry (0.36%) and sector (0.26%) forward dividend yields. See JNPR forward dividend chart.
  • JNPR Price/Sales ratio is 1.84, which is low compared to its industry peers’ P/S ratios. See JNPR forward Price/Sales ratio chart.
  • JNPR cash to debt ratio is 0.99, higher than the average industry (0.18) and sector (0.17) cash to debt ratio. See JNPR cash to debt chart.
  • JNPR Enterprise Value/Revenue multiple is 1.88, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See JNPR Enterprise Value/Revenue chart.

6. What are the reasons to sell JNPR? Why should I sell JNPR stock?

Let's look at the reasons to sell JNPR stock (i.e., the bear case):

  • Nokia's acquisition of Alcatel-Lucent will increase competitive pressure on Juniper in its core carrier market.
  • In the networking security segments, Juniper is playing catch-up amid intense competition.
  • The increasing commoditization of networking components is a perennial threat for all players in this field. It remains to be seen whether Juniper can hold its position at the pole.
  • JNPR quarterly revenue growth was -1.50%, lower than the industry and sector average revenue growth (0.91% and 0.89%, respectively). See JNPR revenue growth chart.
  • JNPR profitability is declining. The YoY profit margin change was -5.79 percentage points. See JNPR profitability chart.
  • JNPR PEG ratio (P/E adjusted for growth) is 8.56, which is high compared to its industry peers’ PEG ratios. See JNPR PEG chart.
  • JNPR short share of float is 6.60%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See JNPR short share of float chart.
  • JNPR short interest (days to cover the shorts) ratio is 5.15. The stock garners more short interest than the average industry, sector or S&P 500 stock. See JNPR short interest ratio chart.

Key Stats

7. What are JNPR key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for JNPR:

Metrics JNPR
Price $21.39
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 3.20%
Industry Communication Equipment
Sector Technology
Number of Employees 9,283
Market Cap $8.15B
Forward P/E Ratio 13.65
Price/Book Ratio 1.84
Revenue (TTM) $4.43B
YoY Quarterly Revenue Growth -1.50%
Profit Margin 7.89%

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