On Mar 5, 2014, Zacks Investment Research upgraded
Juniper Networks Inc.
) 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
Goldman, Sachs & Co.
) 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
), uncertain economic conditions and constricted federal spending
are the possible headwinds.
Other stocks to Consider
Apart from Juniper,
) also sports a Zacks Rank #1 and warrants a look.
CISCO SYSTEMS (CSCO): Free Stock Analysis
GOLDMAN SACHS (GS): Free Stock Analysis
JUNIPER NETWRKS (JNPR): Free Stock Analysis
LEXMARK INTL (LXK): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
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