Ciena (CIEN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Ciena (CIEN) closed at $41.24, marking a -0.6% move from the previous day. This change lagged the S&P 500's daily gain of 0.35%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.37%.
Coming into today, shares of the developer of high-speed networking technology had gained 6.88% in the past month. In that same time, the Computer and Technology sector gained 5.54%, while the S&P 500 gained 4.32%.
CIEN will be looking to display strength as it nears its next earnings release. In that report, analysts expect CIEN to post earnings of $0.63 per share. This would mark year-over-year growth of 8.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $828.61 million, down 14.4% from the year-ago period.
CIEN's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $3.53 billion. These results would represent year-over-year changes of +41.23% and -1.15%, respectively.
Any recent changes to analyst estimates for CIEN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% lower. CIEN is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, CIEN is currently trading at a Forward P/E ratio of 13.95. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 13.95.
It is also worth noting that CIEN currently has a PEG ratio of 0.87. 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. Fiber Optics stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Fiber Optics industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 247, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.