Ciena (CIEN) Stock Sinks As Market Gains: What You Should Know
Ciena (CIEN) closed at $59.60 in the latest trading session, marking a -0.43% move from the prior day. This change lagged the S&P 500's 1% gain on the day. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 0.6%.
Prior to today's trading, shares of the developer of high-speed networking technology had gained 8.5% over the past month. This has outpaced the Computer and Technology sector's gain of 6.38% and the S&P 500's gain of 4.48% in that time.
CIEN will be looking to display strength as it nears its next earnings release. On that day, CIEN is projected to report earnings of $0.83 per share, which would represent year-over-year growth of 16.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $971.70 million, up 1.15% from the year-ago period.
CIEN's full-year Zacks Consensus Estimates are calling for earnings of $2.92 per share and revenue of $3.69 billion. These results would represent year-over-year changes of +38.39% and +3.43%, respectively.
Investors might also notice recent changes to analyst estimates for CIEN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CIEN is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CIEN is currently trading at a Forward P/E ratio of 20.51. This represents a no noticeable deviation compared to its industry's average Forward P/E of 20.51.
Also, we should mention that CIEN has a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CIEN's industry had an average PEG ratio of 1.28 as of yesterday's close.
The Fiber Optics industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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