Juniper Networks is a focus of this week's IBD Screen of the Day as one of the standouts in profit estimates. The computer network provider is building a cup-with-handle base and is approaching a buy point.
Juniper is one of 148 top stocks on our Rising Profit Estimates screen. Its relative strength line is at new highs, as shown in the weekly MarketSmith chart. And it's industry group is ranked No. 12 out of 197 IBD industry groups, up from 180 six months ago.
The stock started basing in April, making it one of the longest patterns around. It has formed a handle with a buy point of 34.05. The stock was up 1.3% Thursday morning and is now trading above its 50-day and 200-day moving averages.
But look at Juniper's earnings. That is why the stock rose to our rising profit estimates screen. Its three-year EPS growth rate is just 3% but its profit rose 26% last quarter over the previous year's Q3. Wall Street analysts expect it to earn 65 cents a share in the fourth quarter on sales of $1.48 billion.
For the full 2022, analysts expect EPS to rise 11% and an even better 17% in 2023.
Juniper Stock Has Rising Profits
In the latest analyst report, Juniper's price target was raised to 42 from 39 by JPMorgan, which maintained its buy rating on the stock.
Juniper stock ranks No. 7 rank among its peers in the computer networking industry group, according to IBD Stock Checkup. Arista Networks and Digi International are the top two stocks within that group.
Juniper's EPS Rating is a lowly 70, although its Composite Rating is 90. Look to see how juniper's EPS Rating changes once it announces Q4 results Jan. 31.
With thousands of names to choose from, how can you efficiently find the top stocks like Juniper to buy and watch? For starters, zero in on top growth stocks that fit your criteria with IBD Stock Screener.
And investors can build their own screens from scratch, or start with IBD stock lists, especially the IBD 50, Sector Leaders, Big Cap 20 and IPO Leaders.
Follow Michael Molinski on Twitter @IMmolinski
