Juniper Networks, Inc. (NYSE: JNPR) $21.41
52-Week Range: $16.67 to $45.01
Price Target: $26.90
Implied upside: 26%
YTD Change: -42%
P/E Ratio: 14
Juniper is often called “the baby Cisco but better” when it comes to networking and routing equipment for communications. Its market cap is about $11.4 billion. Juniper didn’t have the same diversification problems as Cisco, yet shares have been brutalized as Cisco’s have sold off. Earnings and revenues are expected to grow by double digits from this year to next after an earnings hiccup in 2011. If Juniper recovers as much as Cisco did from its lows, it will still not even be close to challenging its 52-week highs.
Marvell Technology Group Ltd.(NASDAQ: MRVL) $14.56
52-Week Range: $11.23 to $22.01
Price Target: $18.42
Implied upside: 26.5%
YTD Change: -21%
P/E Ratio: 9.5
Marvell is a communications chip and circuits design outfit that competes in the crowded space for microprocessors. Its market cap is about $8.8 billion. While off of recent highs, Marvell has bounced back considerably from the August lows. Many investors have considered its patents and its customer base worth at least some takeover speculation. The company has maintained a go-it-alone stance so far. Unfortunately sales growth has stalled and is only expected to move up by high single-digits in 2012.
Micron Technology Inc. (NASDAQ: MU) $5.77
52-Week Range: $3.97 to $11.95
Price Target: $9.01
Implied upside: 56%
YTD Change: -28%
P/E Ratio: 9.6
Micron is not just in DRAM any longer as it is in flash memory as well. It is effectively the last of the big chip outfits that is U.S. based. Its market cap is about $5.7 billion. It also has the Crucial.com site for consumers to buy extra DRAM online for just about any PC that can be upgraded in memory. Its latest earnings picture was far from robust and it is in a highly cyclical business. Expected earnings growth from the August 2011 year-end is tiny and that low forward P/E is actually based upon the expected growth from the August fiscal year 2012 to 2013.
NetApp, Inc. (NASDAQ: NTAP) $39.45
52-Week Range: $33.00 to $61.02
Price Target: $50.19
Implied upside: 27%
YTD Change: -28%
P/E Ratio: 14
NetApp has finally seen a slowdown of what had been major growth in the networked storage solutions sector. Sales growth this year is expected to be more than 20%. NetApp’s market cap here is about $14.5 billion. Wall St. hoped that NetApp would be a takeover candidate in the past. But, the valuations were always considered too high for a reasonable buyout offer. That could change, but NetApp has shown it prefers to remain independent.
Seagate Technology PLC (NASDAQ: STX) $12.10
52-Week Range: $9.05 to $18.35
Price Target: $18.33
Implied upside: 51%
YTD Change: -17%
P/E Ratio: 5.7
Being in the world of disk-drives and external drives has been challenging because no one wants to trust the long-term earnings estimates. Still, these companies are going to be competing in the flash storage world in the years ahead. Their valuations are generally so low that patient investors can wait for a likely improvement. Seagate Technology’s market cap here is just over $5 billion. The biggest challenge the company has is that external storage is such that a Terabyte can be bought for under $100. It looks as though Seagate’s purchase of the Samsung storage unit will now be allowed, so it will be down to Seagate and Western Digital dominating the field.
VeriSign Inc. (NASDAQ: VRSN) $30.43
52-Week Range: $27.00 to $37.73
Price Target: $39.73
Implied upside: 31%
YTD Change: 1%
P/E Ratio: 16.7
VeriSign is the leader of internet domain industry, It has recently focused on SSL Certificates and other online trust and verification services as well as cloud-based services. It has also faced management departures which have squashed recent takeover rumors. VeriSign’s market cap is just over $5 billion, earnings growth is robust right now, and sales are expected to grow in the low double-digits in 2011 and 2012.
Western Digital Corp. (NYSE: WDC) $26.94
52-Week Range: $24.00 to $41.87
Price Target: $43.67
Implied upside: 62%
YTD Change: -20%
P/E Ratio: 6.1
Western Digital is the rival of Seagate and the company has many of the same problems. It is a larger Apple Store feature than its rival for external storage products that Apple’s customers may need. The company is also in a pending merger for Hitachi’s drive unit and its shares have recently been hit due to Thailand factory delays due to floods. This is another value stock and its market cap is about $6.3 billion. Sales growth is expected to average 5% this year and next. Western Digital is still expected to have double-digit earnings growth.
JON C. OGG