Ciena (CIEN) closed the most recent trading day at $34.66, moving +0.14% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.68%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 1.46%.
Prior to today's trading, shares of the developer of high-speed networking technology had lost 9.35% over the past month. This has lagged the Computer and Technology sector's loss of 3.33% and the S&P 500's loss of 1.19% in that time.
Investors will be hoping for strength from CIEN as it approaches its next earnings release, which is expected to be June 6, 2019. On that day, CIEN is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 73.91%. Our most recent consensus estimate is calling for quarterly revenue of $816.40 million, up 11.84% 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 +8.2%, respectively, from last year.
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. 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. 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 has moved 0.08% lower. 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 19.16. This represents a premium compared to its industry's average Forward P/E of 17.58.
It is also worth noting that CIEN currently has a PEG ratio of 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Fiber Optics was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Fiber Optics industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 246, putting it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Ciena Corporation (CIEN) : Free Stock Analysis Report
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