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Time to Buy Juniper?

Monday, 19 Sep 2011 | 6:42 PM ET

Since this is the time of year that tech stocks begin to stop going down and start to work their way back up, Cramer is highlighting some of his favorite tech names this week.

September: Time for Tech?
Tech stocks typically turn around this time of year, says Mad Money host Jim Cramer.

"For once I think tech is in some ways one of the most secure groups out there at the moment,” he said.

One of those on his list is Juniper .

The stock is just a few cents above its 52-week low and has extremely low expectations. That’s because Juniper reported a bad quarter in July, and lowered guidance for the full year. Even before earnings, the stock was already down because its CEO hinted at a rough second half of the year thanks to slow government spending, Japanese supply chain issues and US corporations holding back on their spending.

But now that the stock is so low and estimates have been slashed, that eliminates a lot of the potential downside, the “Mad Money” host said.

“When a stock gets obliterated and the estimates are slashed to the point where they can’t conceivably go much lower,” Cramer said, “then you start to get a bottom on your hands when the facts on the ground start changing for the better.”

And he thinks things could start changing for the better for Juniper. We’ve finally reached the time of year where tech starts to move, and there is a gradual pick up in government spending. Plus, Japan is in recovery mode.

Cramer said Juniper has always been a play on internet traffic growth, and that continues to skyrocket. He also anticipates the company’s infrastructure business to grow about 10 percent over the next five years, while its service layer technologies division should grow at 8 percent.

More importantly, Cramer said, is that the stock is dirt cheap, trading at 10 times forward earnings. While the next quarter could be ugly, everyone expects it to be awful. Also, expectations are lower for its fourth quarter guidance. That’s why Cramer thinks Juniper could jump if the company reports a better than feared number or results that are in-line. Even if it reports a bad number, it may not go down, he said.

“The risk-reward here is just too good to ignore—maybe two to three points of potential downside, not more than that, with many points of possible upside,” Cramer said. “That's the kind of risk reward I like.”

He would buy some here and wait to see if the technicals bear out to buy the rest.

Call Cramer: 1-800-743-CNBC

When this story was published, Cramer’s charitable trust owned Juniper.

Questions for Cramer? madmoney@cnbc.com

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