E TRADE Financial Corporation (ETFC), Juniper Networks, Inc. (JNPR), Ciena Corporation (CIEN): Wednesday’s 3 Best Stocks

Shares of network equipment maker Juniper Networks, Inc. (NYSE:JNPR) jumped 6.5%, riding the coattails of Ciena Corporation (NASDAQ:CIEN) higher after it reported a better-than-expected third-quarter profit and fourth-quarter revenue forecast. The entire networking sector is set to benefit from increased spending in the communication services sector as the 4G LTE craze sweeps the United States. It often takes a few quarters for service providers’ spending to trickle down to network equipment providers like Juniper Networks, Inc. (NYSE:JNPR) and Ciena Corporation (NASDAQ:CIEN), but we’re beginning to see the first signs of that happening. I expect this sector to be a big outperformer over the coming year or two.

Finally, struggling retailer J.C. Penney added 6.1% today after an SEC filing last night disclosed that Larry Robbins’ hedge fund, Glenview Capital Management had taken a 9.1% position in J.C. Penney’s stock. This news comes as Bill Ackman and his hedge fund Pershing Square Capital Management are hitting the exit door with their previously monstrous stake in Penney’s. I’m sure everyone here would like to be the hero who got into J.C. Penney at the bottom, but I remain concerned that Penney’s did too much harm to its core customer by removing its discounts under former CEO Ron Johnson to reverse its losses. Although Penney’s second quarter showed some signs of improvement, I’m not sure it has the tools or talent to become profitable on an annual basis again — and that’s enough reason to keep away!

The article Today’s 3 Best Stocks originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends and owns shares of Ford. It also recommends General Motors.

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