At this point in time, technology stocks are starting to bottom and outperform the rest of the market, Cramer said Wednesday.
Take Juniper Networks , for example. Despite many worries going into the quarter, the U.S.’s second-largest networking company reported in-line quarterly earnings results after Tuesday’s closing bell. Juniper also gave downside guidance for the next quarter, though, lowering the bar for how well it needs to do going forward. The networking equipment space is challenging, Cramer said, because rival Cisco Systems is becoming more competitive.
Juniper’s stock sells for 12 times next year’s earnings despite a 16 percent long-term growth rate, which Cramer said is very cheap. Historically, Juniper has sold for 23 times forward earnings.
Cramer thinks it’s a bargain at these levels because there are near-term catalysts that could send it higher. To learn more about its future prospects, competition and more, Cramer welcomed CEO Kevin R. Johnson onto “Mad Money.” Check out the video to see the full conversation.