Juniper Networks, Inc. JNPR has announced the availability of its latest versions of virtual routing and security platforms, namely vMX and vSRX Virtual Firewall, respectively on Amazon.com, Inc.’s AMZN AWS Marketplace.
The virtual platforms will enable enterprises to deploy carrier-grade routing and firewall functionalities at the click of a mouse button. Moreover, customers can either subscribe to the services on an on-demand basis from the AWS Marketplace or from Juniper Networks directly.
What this Means for Juniper?
Although there are many benefits of using the cloud, enterprises having on-premises IT infrastructure often face challenges while migrating and implementing their cloud strategies. Juniper’s virtual platforms closely mimic the functionalities and features of on-premises implementations of MX and SRX platforms, thereby making the process of workload migration easier as well as simplifying the usability of virtual private cloud services.
As per an IDC report, worldwide spending on public cloud services is estimated to reach $195 billion by 2020, growing at a CAGR of 20.4%. Given such a huge scope for growth in the cloud, Juniper’s decision to make its products available on the AWS marketplace is a well-timed one and augurs well for the company in the long run.
Stock Performance Overview
We note that shares of Juniper have outperformed the Zacks Wireless Equipment industry over the last three months. While the stock generated a return of 16.03%, the broader Wireless Equipment sector generated a negative return of 2.84%.
The outperformance of the stock was primarily driven by new product launches, cost reduction initiatives and improving execution strategies. Additionally, the company’s expansion into the software defined network segment should further strengthen its position in the networking space. Also, customer wins like Telefonica will continue to drive top-line growth in the near term.
Zacks Rank and Key Picks
At present, Juniper carries a Zacks Rank #2 (Buy).
Some better-ranked stocks in the broader technology space are Ubiquiti Networks, Inc. UBNT, sporting a Zacks Rank #1 (Strong Buy) and DragonWave Inc. DRWI, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Ubiquiti’s current year has been revised upward to $2.96 from an earlier estimate of $2.66 over the last 30 days.
Similarly, the consensus estimate for DragonWave’s current year has narrowed down to a loss of $2.60 from a loss of $3.49 over the last 60 days.
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