In the latest trading session, Ciena (CIEN) closed at $36.73, marking a -0.54% move from the previous day. This change lagged the S&P 500's 0.07% gain on the day. At the same time, the Dow 0%, and the tech-heavy Nasdaq lost 0.29%.
Prior to today's trading, shares of the developer of high-speed networking technology had gained 0.93% over the past month. This has lagged the Computer and Technology sector's gain of 5.79% and the S&P 500's gain of 4.3% in that time.
CIEN will be looking to display strength as it nears its next earnings release. On that day, CIEN is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 18.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $964.80 million, up 7.28% from the year-ago period.
Any recent changes to analyst estimates for CIEN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CIEN currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CIEN is holding a Forward P/E ratio of 14.43. For comparison, its industry has an average Forward P/E of 14.43, which means CIEN is trading at a no noticeable deviation to the group.
Also, we should mention that CIEN has a PEG ratio of 0.83. 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 was holding an average PEG ratio of 0.83 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 102, putting it in the top 40% 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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