Juniper Networks (JNPR) fills gap after earnings, but Three Falling Peaks flashing bearish
Juniper Networks (NYSE: JNPR) announced earnings results on January 29 and the results disappointed investors. The stock gapped sharply lower the next day and it would end up losing 7.6% on the day.
The stock has rallied since the earnings report and has filled the gap in the chart that formed after the earnings disappointment. Unfortunately for investors, it looks like the recent rally that filled the gap has also created a pattern know as three falling peaks.
We see the peak in early December and then the peak in mid-January ahead of the earnings report. Now the stock looks like it is peaking here in February. The stochastic readings are in overbought territory and made a bearish crossover on February 26. This could be another bad sign for the stock.
The Tickeron AI Prediction tool generated a bearish signal on Juniper on February 25. That signal came with a confidence level of 83% and previous predictions have been accurate 71% of the time. The signal calls for a 4% decline in the stock price within the next month.
Another factor that could hurt Juniper going forward is the lack of earnings and sales growth. Over the last three years the company’s earnings have declined by an average of 4% per year while sales have declined at an average of 1% per year.
JNPR's RSI Oscillator climbs out of oversold territory
The RSI Oscillator for JNPR moved out of oversold territory on December 04, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In of the 27 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 03, 2024. You may want to consider a long position or call options on JNPR as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for JNPR just turned positive on December 04, 2024. Looking at past instances where JNPR's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where JNPR advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where JNPR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
JNPR moved below its 50-day moving average on December 18, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JNPR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
JNPR broke above its upper Bollinger Band on December 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.675) is normal, around the industry mean (8.299). P/E Ratio (39.000) is within average values for comparable stocks, (91.676). Projected Growth (PEG Ratio) (1.114) is also within normal values, averaging (1.815). Dividend Yield (0.024) settles around the average of (0.042) among similar stocks. P/S Ratio (2.170) is also within normal values, averaging (26.790).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. JNPR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a provider of Internet infrastructure solutions for Internet service providers
Industry TelecommunicationsEquipment