Should Value Investors Buy Juniper Networks (JNPR) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Juniper Networks (JNPR). JNPR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.64. This compares to its industry's average Forward P/E of 18.79. Over the past 52 weeks, JNPR's Forward P/E has been as high as 15.61 and as low as 9.81, with a median of 13.36.

Finally, investors should note that JNPR has a P/CF ratio of 14.38. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JNPR's current P/CF looks attractive when compared to its industry's average P/CF of 39.34. Within the past 12 months, JNPR's P/CF has been as high as 16.75 and as low as 10.81, with a median of 15.02.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Juniper Networks is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JNPR feels like a great value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research