Here’s How Juniper Networks Stock Strongly Outperformed The Broader Markets!

-4.17%
Downside
34.70
Market
33.25
Trefis
JNPR: Juniper Networks logo
JNPR
Juniper Networks

Juniper Networks Inc. (NYSE: JNPR) stock price gained 33% from $22.51 at 2020 end to around $30 currently, primarily due to favorable changes in its P/S multiple. During this period, the company also witnessed a 11% rise in revenues, and combined with a drop in its outstanding share count, the company’s stock price has grown. Additionally, over the same period, the S&P 500 returned around 2%, meaning that Juniper stock has strongly outperformed the index since 2020-end.

In our interactive dashboard, Why Juniper Networks Stock Moved: JNPR Stock Has Gained 33% Since 2020, we break down the factors behind this move.

(A) JNPR’s Total Revenue has increased 11% from $4.4 billion in FY 2020 to $4.9 billion on an LTM basis

  • JNPR’s total revenue rose from $4.4 billion in FY 2020 to $4.7 billion in FY 2021, and the growth has sustained, with sales currently standing even higher at $4.9 billion on an LTM basis.
  • The company develops and markets networking products, including routers, switches, network management software, network security products, and software-defined networking technology.
  • Product sales made up 65% of the company’s total sales as of FY 2021, coming in at $3.08 billion, with services sales making up the remaining 35%.
  • For additional details about JNPR’s revenues and comparison to peers, see Juniper Networks (JNPR) Revenue Comparison
Relevant Articles
  1. What To Expect As Juniper Publishes Its Q3 Results?
  2. What’s Driving The Surge In Digital Infrastructure Stocks?
  3. What To Expect From Juniper Networks’ Q1 Earnings?
  4. What’s Happening With Juniper Stock?
  5. What’s Behind Juniper Networks’ Stock’s Strong Underperformance Of The S&P Since 2017?
  6. Can Juniper Networks Stock Continue Performing Better Than The S&P?

(B) Revenue per share (RPS) increased 13% from $13.58 in 2020 to $15.41 currently

  • JNPR’s revenue rose from $4.4 billion in 2020 to $4.9 billion currently, while the outstanding share count dropped from 327.2 million in FY 2020 to around 320 million currently.
  • Due to this, RPS has risen from $13.58 in FY ’20 to $15.41 currently.

(C) Price-To-Sales (P/S) multiple for JNPR rose strongly from 1.7x in 2020 to 2.4x by 2021 end, but has pulled back to 1.9x currently, still higher than its 2020 level

  • JNPR’s P/S multiple rose strongly to around 2.4x by late 2021, on the back of rising investor expectations surrounding increased demand for the company’s products and services.
  • However, due to the increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 1.9x.
  • For additional details about the company stock returns, and comparison to peers, see Juniper Networks (JNPR) Stock Return Comparison.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

 Returns Nov 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 JNPR Return -2% -16% 6%
 S&P 500 Return -1% -20% 71%
 Trefis Multi-Strategy Portfolio -3% -24% 200%

[1] Month-to-date and year-to-date as of 11/9/2022
[2] Cumulative total returns since the end of 2016

Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates