Ciena (CIEN) closed the most recent trading day at $59.11, moving -0.57% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.85%, and the tech-heavy Nasdaq gained 0.43%.
Coming into today, shares of the developer of high-speed networking technology had gained 10.94% in the past month. In that same time, the Computer and Technology sector gained 6.92%, while the S&P 500 gained 6.78%.
CIEN will be looking to display strength as it nears its next earnings release. In that report, analysts expect CIEN to post earnings of $0.83 per share. This would mark 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.92 per share and revenue of $3.69 billion, which would represent changes of +38.39% and +3.43%, respectively, from the prior year.
Any recent changes to analyst estimates for CIEN should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. CIEN is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CIEN is currently trading at a Forward P/E ratio of 20.37. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 20.37.
Investors should also note that CIEN has a PEG ratio of 1.27 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CIEN's industry had an average PEG ratio of 1.27 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 118, putting it in the top 47% 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.
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