Juniper Networks, Inc. JNPR recently augmented the network capabilities of Telefonica UK, a leading telecommunications service provider in the United Kingdom, for the likely rollout of 5G services across the country. The improvement in infrastructure facilities is expected to reduce the complexity of the network, while increasing operational flexibility and efficiency of Telefonica UK, which is owned by Madrid-based Telefonica, S.A. TEF.
Notably, Juniper has collaborated with Telefonica to build the Fusion Network across the globe that would help deliver superior customer service through infrastructure upgrade and simplified operations. The company has presently implemented the first phase of this project in the United Kingdom with the successful migration of Telefonica UK’s services to the Fusion Network in the country.
With the latest assortment of routers, routing platforms, Junos Fusion Edge and automation framework, Juniper aims to significantly improve the network service offering of Telefonica UK. In addition to more agile service delivery, the better network facilities are likely to offer enhanced security features for enhanced visibility and customer data protection. This, in turn, is expected to provide shorter time-to-market for new services, while ensuring regulatory compliance and data security.
Despite some short-term challenges, particularly within the cloud and service provider verticals, Juniper expects encouraging developments in most areas of its business, which augur well for its long-term growth. The company has made significant changes to its go-to-market structure to better align its sales strategies with each of its core customer verticals.
Moreover, several new products are in the pipeline, which are expected to further strengthen its competitive position across service provider, cloud and enterprise market. Offerings include new MX line card that will strengthen its ability to capitalize on carrier 5G initiatives, new 400 gig platform that will improve its ability to capture data centric footprint particularly in the cloud. Also, new enhancement to its Contrail Enterprise Multicloud platform is in the cards, which will help its mid to large enterprise customers transition to a multicloud world with increased simplicity and reduced cost. It is also planning to introduce new silicon photonics capability that is likely to enhance its competitive position.
Despite solid inherent growth potential, the stock has lost 8.1% in the year-to-date period, while the industry has rallied 15.9%.
Juniper currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader industry are PCTEL, Inc. PCTI and UTStarcom Holdings Corp UTSI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PCTEL surpassed earnings estimates thrice in the trailing four quarters, the average surprise being 146.4%.
UTStarcom surpassed earnings estimates twice in the trailing four quarters, the average positive surprise being 56.4%.
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