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Juniper's (JNPR) Router Chosen by TSE for Platform Upgrade

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Juniper Networks Inc. (JNPR - Free Report) announced that its MX4803D Universal Edge Router has been selected by Tokyo Stock Exchange (TSE) to carry out an extensive upgrade to its current networking platform – ‘arrownet v2’ that supports ‘arrowhead’, the exchange’s own proprietary trading system.

Juniper Networks, Inc. Price and Consensus

How Juniper Fits into the Picture?

Being the largest stock exchange in Asia, TSE has always remained focused on building and maintaining a cutting edge network that is reliable and efficient. However, TSE’s arrownet users had to use multiple network connections based on various factors such as distribution method and environment, which increased costs.

Now, by using Juniper’s MX4803D Universal Edge Router, TSE will be able to integrate all financial trading that is currently being carried out in Japan. Moreover, the router will enable TSE to provide enhanced speed, scalability, reliability and last but not the least security to its customers.

What Does this Mean for Juniper?

As per an IDC report, worldwide carrier routing network equipment sales to service providers are expected to grow to $12.7 billion by 2020 at a CAGR of 3.1%.

Given the huge scope the segment has to offer, Juniper’s selection by the TSE is a big positive for the company. However, there is fierce competition in the segment with the presence of Cisco (CSCO - Free Report) , Huawei, Hewlett Packard Enterprise (HPE - Free Report) and Arista Networks.

Stock Performance Overview

Shares of Juniper have outperformed the broader Zacks Wireless Equipment industry over the last two years. While the broader industry declined 31.8%, Juniper generated a positive return of 17.2%

The outperformance of the stock can be primarily attributed to the company’s product launches, cost reduction initiatives and improving execution.

Zacks Rank & Stock to Consider

At present, Juniper carries a Zacks Rank #2 (Buy).

A better-ranked stock in the broader technology space is Alibaba Group Holding Limited (BABA - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the Zacks Consensus Estimate for Alibaba’s current quarter has improved to 44 cents from 42 cents over the last seven days.

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