Ciena (CIEN) closed the most recent trading day at $38.28, moving -1.1% from the previous trading session. This change lagged the S&P 500's 0.23% loss on the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the developer of high-speed networking technology had lost 1.17% in the past month. In that same time, the Computer and Technology sector gained 4.13%, while the S&P 500 gained 3.16%.
CIEN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, up 78.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $818.07 million, up 12.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.81 per share and revenue of $3.35 billion. These totals would mark changes of +30.22% and +8.24%, respectively, from last year.
It is also important to note the 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 currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that CIEN has a Forward P/E ratio of 21.4 right now. This valuation marks a discount compared to its industry's average Forward P/E of 23.12.
We can also see that CIEN currently 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. The Fiber Optics industry currently had an average PEG ratio of 1.68 as of yesterday's close.
The Fiber Optics industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.
To follow CIEN in the coming trading sessions, be sure to utilize Zacks.com.
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Ciena Corporation (CIEN) : Free Stock Analysis Report
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