Short-Term Struggles Could Persist For BA, JNPR Stocks

JNPR shares are actually facing off against two bear signals

by Josh Selway

Published on Aug 1, 2019 at 2:13 PM
Updated on Jun 24, 2020 at 10:16 AM

We've taken a hard look at how stocks perform in August, and two names that stood out were Boeing Co (NYSE:BA) and Juniper Networks, Inc. (NASDAQ:JNPR). The shares of BA and JNPR are important in particular because both stocks have already been in a slump. As such, let's take a look at the historical data to see what we might expect from the securities.

For blue chip Boeing, the stock has averaged a 1.64% loss for August in the past 10 years, and it's only finished the month in positive territory 20% of the time. This comes after the equity just breached its 200-day moving average following a rough earnings release, and is now down almost 11% in the past six months.

boeing stock aug 1

With earnings out of the way, short-term options are affordable on Boeing at the moment. To be more specific, the Schaeffer's Volatility Index (SVI) of 25% ranks in the 25th annual percentile, so premiums are lower than normal right now. BA's volatile year has been good to options traders it would seem, since its Schaeffer's Volatility Scorecard (SVS) comes in at 79 out of 100.

As for Juniper Networks, the shares have averaged a loss of 4% for the month in the past decade, and have only been positive twice. However, that's not the only red flag around JNPR, as Schaeffer's Senior Quantitative Analyst Rocky White notes that the equity is currently hovering near the 52-week moving average, a long-term trendline that's historically caused headwinds, with the equity averaging a one-month loss of 3.4% following the previous 15 signals.

JNPR stock aug 1

JNPR also has an attractive SVI, coming in at 23% and ranking in the 10th annual percentile. Options traders have already been quite bearish on the software name, with peak open interest sitting at the October 25 put, and the September 25 put is close behind. Analysts are also hesitant to recommend the shares, with just four of 14 in coverage handing out "buy" or better ratings.


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