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Ciena (CIEN) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 min read

Ciena (CIEN) closed at $43.12 in the latest trading session, marking a +0.58% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq lost 1.37%.

Prior to today's trading, shares of the developer of high-speed networking technology had gained 0.33% over the past month. This has lagged the Computer and Technology sector's gain of 2.34% and the S&P 500's gain of 2.25% in that time.

Wall Street will be looking for positivity from CIEN as it approaches its next earnings report date. 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, our latest consensus estimate is calling for revenue of $828.61 million, down 14.4% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for CIEN. Recent revisions tend to reflect the latest 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. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. CIEN is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, CIEN is holding a Forward P/E ratio of 16.01. For comparison, its industry has an average Forward P/E of 16.01, which means CIEN is trading at a no noticeable deviation to the group.

Investors should also note that CIEN has a PEG ratio of 1 right now. 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 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 251, which puts it in the bottom 2% 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.

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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