In the latest trading session, Ciena (CIEN) closed at $59.08, marking a -0.62% move from the previous day. This move lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow lost 0.24%, and the tech-heavy Nasdaq gained 0.73%.
Heading into today, shares of the developer of high-speed networking technology had gained 9.38% over the past month, outpacing the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 5.04% 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 $0.83 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.
Investors might also notice recent changes to analyst estimates for CIEN. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. CIEN is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CIEN has a Forward P/E ratio of 20.37 right now. Its industry sports an average Forward P/E of 20.37, so we one might conclude that CIEN is trading at a no noticeable deviation comparatively.
Also, we should mention that CIEN has a PEG ratio of 1.27. 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 123, putting it in the top 49% 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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Ciena Corporation (CIEN) : Free Stock Analysis Report
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