|Bid||6.11 x 900|
|Ask||6.12 x 1200|
|Day's Range||6.05 - 6.21|
|52 Week Range||3.26 - 9.48|
|Beta (3Y Monthly)||1.49|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
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It seems that everyone wants to invest in tech these days. While the trade news from China has stoked fears about tech’s international exposure, the tech-heavy NASDAQ is still up 20% year-to-date. Tech is the go-to sector, getting headlines and analyst attention, and sometimes generating tremendous returns that justify the buzz.But not everyone has the budget to put down the four-figure share price for Alphabet or Amazon. Here we look at three tech stocks for value-conscious investors. These small-cap stocks present a low-cost option for entering the tech sector, and high upsides to make it worthwhile. NeoPhotonics Corporation (NPTN)Optoelectronics, using lasers, optical semiconductors, and photonic circuits to transmit and receive data streams in the high-volume 200+ gigabyte per second range, are the current leading edge in data transmission, and NeoPhotonics is a leader in the field. The company reported earnings last week, and beat the estimates by 70%. Analysts had expected the company to lose 10 cents per share, but the loss came in at 3 cents even though the quarterly revenues of $81.69 million just missed the forecast.NPTN was hit hard by the US-China trade tensions, especially as it is a major supplier for Chinese smartphone maker Huawei. Huawei was sanctioned by the US Administration, both as retaliation for intellectual property theft and as a protectionist measure for US network device makers. At the same time, there are positive reasons why this company is on the analysts’ radar.Michael Genovese (a 4-star analyst according to TipRanks) of MKM Partners noted the Huawei exposure, adding, “The company has determined that most of the products it ships to Huawei are not subject to the Entity List restrictions, with good demand being seen for its 100G/200G products. We see 28% sequential increase in sales to the company's next four largest customers after Huawei, and demand trends are strong across Telecom and DCI applications.” Genovese raised his price target on NPTN to $7, suggesting a 14% upside to the stock.He wasn’t the only analyst to take an upbeat message from NeoPhotonic’s quarterly report. Jun Zhang (a 4-star analyst), from Rosenblatt Securities, also rates the stock a buy, with a high $10 price target. Zhang wrote: “NeoPhotonics saw strong demand in the DCI and metro markets from Western customers... In addition, 400G related products ramped quickly, while 25G EML lasers are seeing a strong ramp and now account for 10% of revenue. We expect NeoPhotonics to continue to benefit from the initial deployment of 400G/600G networks.” Zhang’s price target implies an impressive 63% upside potential for NPTN.NeoPhotonics shares jumped 46% after the Q2 report, and now stand at $6.10. The average price target, $7.71, indicates a potential upside of 26%. The stock has a Strong Buy rating from the analyst consensus, with 6 buys and 1 hold given in the past three months. nLight, Inc. (LASR)Also an industrial and optoelectronic laser company, nLight’s business has also suffered from China exposure. But where NeoPhotonics reported a quarterly loss, nLight reported a gain of 5 cents per share. That still represented a 16% miss, but the quarterly revenues of $48.05 million were in line with expectations.While nLight’s stock has dropped sharply in the past year, the company remains profitable and analysts see the headwinds easing in the longer-term. DA Davidson’s Thomas Diffely (a 5-star analyst according to TipRanks) pointed out the pressures, including industry concerns over US-China trade issues, increased pricing pressure from China’s domestic competitors, and a slowing industrial laser market. On the positive side, he says, “[LASR’s] Aerospace and Defense segment remains a bright spot with its sixth consecutive quarter of double-digit growth.” That’s enough for him to maintain his buy rating on the stock, with a $20 price target and a 37% upside.Agreeing with Difflely on the bullish prospects for LASR are Needham’s James Ricchiuti (a 5-star analyst) and Stifel’s Patrick Ho (a 5-star analyst). They set price targets of $19 and $24, respectively.LASR shares are the highest priced of the stocks were looking at here, currently trading at $14.60. The stock has an average price target of $19.33 and a potential upside of 32%. The Moderate Buy analyst consensus rating comes from 4 buys and 3 holds given over the past three months. ViewRay, Inc. (VRAY)ViewRay is a pioneer in medical imagery, developing MRI technology to provide real-time imaging to improve the accuracy and delivery of radiation treatments, allowing greater benefits to the patient from lower radiation doses. And like many high-tech companies at the cutting edge of their fields, ViewRay has consistently reported quarterly losses. At the same time, high revenues offer a compelling bull case for VRAY.Losses aren’t necessarily cause for concern, as they are usually baked into the pricing of tech startups. ViewRay took a 32 cent per share hit in Q2, but on a positive note, revenue was up. The quarterly revenue of $30.17 million beat the estimate by 12.57% and was nearly double the year-ago quarter’s $16.44 million.That strong revenue beat carried the day, as far as Wall Street’s analysts were concerned. Buy pushing down the stock price – VRAY dropped from $9 to $3 after the quarterly release – the earnings report has opened up a buying opportunity for this stock. Jefferies analyst Anthony Petrone (a 4-star analyst) lists everything that went wrong for ViewRay in the quarter before coming to his conclusion: “We remain positive on the long-term prospects for MRIdian. Keep a Buy rating on ViewRay.” His price target, $7, underlines his optimism with an upside of 125%.Writing from Northland Securities, Suraj Kalia (a 4-star analyst) noted, “Unit orders beginning Q1-18 have been 4, 6, 6, 8, 7, and 3, respectively. Our FY19 unit order estimate goes to 24 units (from 31). FY20 unit orders @ 54 remains unchanged.” Kalia’s $5 price target suggests a 61% upside.The most optimistic take on VRAY comes from Andrew D’silva (a 3-star analyst) of B. Riley FBR. D’silva points out that, despite growing competition, ViewRay has more product installations during the quarter than expected: “The top-line beat was primarily due to VRAY installing 5 MRIdian Linacs versus our expectation for 4.” He gives the stock a $9 price target, suggesting an impressive 190% upside.Overall, VRAY has a Strong Buy from the analyst consensus, based on a unanimous 7 buy ratings. The stock is priced at $3.10, and the average price target of $7.86 gives it a 153% upside.Visit TipRanks’ Top Analysts page to find out which stocks are stirring up notice on the Street.
(Bloomberg) -- The White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies Co. after Beijing said it was halting purchases of U.S. farming goods, according to people familiar with the matter.Commerce Secretary Wilbur Ross, whose department has vetted the applications to resume sales, said last week he’s received 50 requests and that a decision on them was pending. American businesses require a special license to supply goods to Huawei after the U.S. added the Chinese telecommunications giant to a trade blacklist in May over national-security concerns.The U.S. decision rattled stocks, bonds, currencies and even soybean prices around the world. Huawei suppliers Micron Technology Inc. and Western Digital Corp. declined as much as 2.2% after news of the delay in license approvals, while Qualcomm Inc., Xilinx Inc. and NeoPhotonics Corp. all fell more than 1% in after-hours trading. Huawei’s dollar bond spreads widened by 10 to 15 basis points Friday morning, while the Australian dollar and offshore yuan weakened versus the greenback and the yen gained.Trade TrucePresident Donald Trump said in late June after agreeing to a now-broken trade truce with Chinese President Xi Jinping in Japan that some restrictions on Huawei would be loosened. But that promise was contingent upon China beefing up its purchases from American farmers, which Trump has complained the country has failed to do.In the past week tensions have escalated further as Trump said he would impose a 10% tariff on $300 billion of Chinese imports as of Sept. 1 and his Treasury Department formally labeled China a currency manipulator.Still, Trump said last week there were no plans to reverse the decision he made in Japan to allow more sales by U.S. suppliers of non-sensitive products to Huawei. He said the issue of Huawei is not related to the trade talks.The White House had no immediate comment, and the Commerce Department declined to comment. Huawei also declined to comment. China’s foreign affairs and commerce ministries didn’t immediately respond to faxed requests for comment.Tech PitchTechnology companies have already made their pitch to the White House for a rapid granting of licenses that would allow them to resume some shipments of components to Huawei.The Chinese company is one of the world’s biggest purchasers of semiconductors. Continuing access to that market is crucial to the fortunes of chipmakers such as Intel Corp., Qualcomm Inc. and Broadcom Inc. who sent their chief executives to meet with Trump in July.Companies such as Xilinx Inc. and Micron have publicly said they’ve applied for licenses and called on the U.S. to allow them to resume doing business with Huawei. They argue that many of their products are easily obtainable from their overseas rivals, making a ban ineffective and also harmful to the industry that the trade dispute with China is supposed to be helping.Some U.S.-based makers of electronic components have already reported earnings and given forecasts that show the negative effects of the trade dispute.(Updates with bond spread moves in fourth paragraph.)\--With assistance from Adam Haigh and Jeran Wittenstein.To contact the reporters on this story: Jenny Leonard in Washington at email@example.com;Ian King in San Francisco at firstname.lastname@example.org;Jennifer Jacobs in Washington at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, ;Michael Shepard at email@example.com, ;Tom Giles at firstname.lastname@example.org, Sarah McGregor, Scott LanmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NeoPhotonics (NPTN) delivered earnings and revenue surprises of 70.00% and -2.66%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Most Cisco Systems (NASDAQ:CSCO) shareholders apparently cheered Cisco's acquisition of optical communication technology company Acacia Communications (NASDAQ:ACIA), as the already-overbought Cisco stock rose following the announcement of the deal. It's possible that many of those investors, however, don't fully understand the significance of the transaction.Source: Shutterstock The networking giant will bolster the breadth and depth of its fiber optic tech portfolio by officially making Acacia, which was already a CSCO supplier, part of the Cisco family.It's a development that merits a look beyond simple explanations, though, even for the non-tech layperson who happens to hold Cisco stock. Although the deal won't immediately boost Cisco stock price, the transaction sets the stage for Cisco stock to rally beginning in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Another Smart DealCisco CEO Chuck Robbins has made clear since he took the helm in 2015 that Cisco would use what's now a $35 billion war chest to invest in bolt-on businesses. And that's what he's been doing. Shortly before the $2.6 billion offer was made to Acacia, Cisco announced its intent to acquire Sentryo. In January, it bought Singularity Networks. In 2018, Cisco acquired six companies.The Acacia deal is another big step down a mostly-underestimated path that Cisco is already traveling, though. With Acacia, CSCO now has something it can offer network operators that will have to use fiber optic solutions to handle the massive data loads which the advent of 5G connections will create.In short, Acacia's wares, known as coherent optical interconnect products, facilitate so-called long-haul optical communications that can travel thousands of miles.Acacia's products are the perfect complement to Cisco's large-scale networking portfolio, though they also bolster the "inside the data center" optical networking technology that CSCO obtained through last year's acquisition of Luxtera. Coherent Technology Is the Inevitable FutureCoherent technology is a vague term used to describe using light-based signals to communicate at 100G speeds (and beyond) for long, long distances.Cisco didn't invent it, exactly. Arguably, it was smaller rival Ciena (NYSE:CIEN) that laid the ground work for long-distance fiber optic communications a decade ago. Ciena hasn't been able to commercialize the technology the way Cisco appears it will be able to, however.5G wireless speeds are set to effectively be three to four times faster than 4G connections, though in practical theory, they could be ten or twenty times faster. That makes 5G a potential alternative to wire-based internet communications.For perspective, Cisco forecasts that global coherent traffic will reach 13.2 exabytes per day in 2022, up from 4.1 exabytes per day in 2017. 5G devices will spur much of that new traffic.The catch is that radio signals can only travel so far, and cross-country communications can't be handled by radio. They have to be carried by a physical line at least some of the way. Fiber optics, or optical networking, are the only way to do that. And to make optical networking feasible, many 100G-capable fiber optic lines will have to be laid down. That, of course, is where Cisco's coherent technology will come in. Looking Ahead for Cisco StockThe coherent optical technology hardware market is expected to be worth $70 billion by 2026, according to Acumen Research and Consulting. That's more revenue than Cisco produced over the course of the past four reported quarters, pointing to a tremendous growth opportunity and a huge potential positive catalyst for Cisco stock.Current and prospective owners of Cisco stock may not want to celebrate just yet, however. Other players are gunning for a piece of that market. The aforementioned Ciena is one of them. NeoPhotonics (NYSE:NPTN) is another. Infinera (NASDAQ:INFN) is still another.Only a handful of players can offer a soup-to-nuts solution, though.Jimmy Yu, vice president and industry analyst for the Optical Transport program with Dell'Oro Group, explains: "Once Cisco concludes this acquisition, four optical system vendors will have in-house capability for developing and producing the key components for coherent line cards. The four system vendors are Cisco, Ciena, Huawei, and Infinera."Of the four, Cisco stands out as the one most operators are willing to bet will be around and available into the future, with the least risk of running into political turbulence. That's good news for CSCO and Cisco stock price.The 5G-driven growth of Cisco's coherent technology arm may not materialize until next year, but given its potential, Cisco stock could plausibly start to reflect that opportunity this year.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks Under $10 * 8 Monthly Dividend Stocks to Buy for Consistent Income * 7 Disruptive Biotech Stocks to Buy for 2025 The post What the Acacia Acquisition Means for Cisco Stock appeared first on InvestorPlace.
NeoPhotonics (NPTN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.