Back to top

Analyst Blog

On Mar 5, 2014, Zacks Investment Research upgraded Juniper Networks Inc. (JNPR - Analyst Report) to a Zacks Rank #1 (Strong Buy) based on the positive estimate revisions witnessed over the last 30 days.

Why the Upgrade?

Juniper has been witnessing positive estimate revisions for the fiscal 2014 which led the earnings per share to rise from $1.04 to $1.14 over the last 30 days.

Moreover, some of the optimism was due to positive news flow over the couple of weeks. Recently, Juniper entered into an accelerated share repurchase (ASR) agreement with Barclays Bank plc and Goldman, Sachs & Co. (GS - Analyst Report) as part of its new capital allocation strategy.

Per the agreement, Juniper will purchase shares worth $1.2 billion from the two entities with the cash in hand. Juniper’s new capital allocation strategy also requires it to return $3 billion over the next three years. Per the strategy, shares worth $2 billion are to be repurchased (including the current ASR program) by the end of the first quarter of 2015. The balance is to be distributed as dividends that will be initiated from the third quarter of 2014.

Moreover, the company expects to streamline its cost structure and business model with One-Juniper initiative. As part of this initiative, the company will combine its engineering teams, go-to-market teams and research & development teams to provide a comprehensive and innovative solution to customers.

Additionally, increased spending by service providers should support Juniper’s near-term fundamentals. The company’s expansion into the software defined network segment is expected to strengthen its position in the networking space.

While the company’s new products, cost reduction initiatives and improving execution remain the growth catalysts, increasing competition from Cisco (CSCO - Analyst Report) and AT&T (T - Analyst Report), uncertain economic conditions and constricted federal spending are the possible headwinds.

Other stocks to Consider

Apart from Juniper, Lexmark International (LXK - Analyst Report) also sports a Zacks Rank #1 and warrants a look.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%
AROTECH COR… ARTX 3.78 +5.59%