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What Makes Viavi (VIAV) a 'Buy' Amid Market Volatility?
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Earnings estimate for Viavi Solutions Inc. (VIAV - Free Report) for the current fiscal has moved up 5.9% since August 2019 end, while that for the next fiscal increased 2.7% in the past year, implying healthy inherent growth potential. Despite market volatility, this Zacks Rank #2 (Buy) stock appears to be a solid investment option for investors at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Drivers
Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain, and optimize complex physical and virtual networks. The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle, fueled by the transition of OEMs and service providers to super-fast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets.
The 5G transition is expected to be disruptive in nature, potentially creating new avenues for industries across the board. 5G is likely to augment the scalability, security and universal mobility of the telecommunications industry, thus propelling the proliferation of IoT. Telecom firms are enabling customers to move away from an economy-of-scale network operating model to demand-driven operations. They are ensuring seamless migration to 5G by offering easy programmability and flexible automation. The convergence of network technologies requires significant investments from both traditional carriers (telecom and cable) and cloud service providers. Viavi’s solutions are well positioned to meet these rapidly changing industry trends, given its technology prowess, product depth and wide customer base.
Demand for sophisticated anti-counterfeiting features, which consumers can easily validate without the use of special tools but are difficult to create or simulate using conventional printing technology, has led to exponential growth of Viavi’s OSP segment. The custom optics products of the company offer an array of advanced technologies and precision optics to meet the specific requirements of customers. Its 3D sensing optical filters and Engineered Diffusers are deployed in smartphones for facial recognition biometric authentication. In addition, optical filters and sensors deployed in autonomous vehicles and IoT devices offer lucrative growth opportunities for the company.
Other Key Picks
Some other top-ranked stocks in the industry are SeaChange International, Inc. (SEAC - Free Report) and Spirent Communications PLC (SPMYY - Free Report) , carrying a Zacks Rank #2 and Ooma, Inc. (OOMA - Free Report) , sporting a Zacks Rank #1.
SeaChange International has a long-term earnings growth expectation of 10%.
Spirent is currently trading at forward P/E of 17.7X.
Ooma has a long-term earnings growth expectation of 47.7%. It delivered a positive earnings surprise of 124.1%, on average, in the trailing four quarters, beating estimates on each occasion.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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What Makes Viavi (VIAV) a 'Buy' Amid Market Volatility?
Earnings estimate for Viavi Solutions Inc. (VIAV - Free Report) for the current fiscal has moved up 5.9% since August 2019 end, while that for the next fiscal increased 2.7% in the past year, implying healthy inherent growth potential. Despite market volatility, this Zacks Rank #2 (Buy) stock appears to be a solid investment option for investors at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Drivers
Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain, and optimize complex physical and virtual networks. The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle, fueled by the transition of OEMs and service providers to super-fast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets.
The 5G transition is expected to be disruptive in nature, potentially creating new avenues for industries across the board. 5G is likely to augment the scalability, security and universal mobility of the telecommunications industry, thus propelling the proliferation of IoT. Telecom firms are enabling customers to move away from an economy-of-scale network operating model to demand-driven operations. They are ensuring seamless migration to 5G by offering easy programmability and flexible automation. The convergence of network technologies requires significant investments from both traditional carriers (telecom and cable) and cloud service providers. Viavi’s solutions are well positioned to meet these rapidly changing industry trends, given its technology prowess, product depth and wide customer base.
Demand for sophisticated anti-counterfeiting features, which consumers can easily validate without the use of special tools but are difficult to create or simulate using conventional printing technology, has led to exponential growth of Viavi’s OSP segment. The custom optics products of the company offer an array of advanced technologies and precision optics to meet the specific requirements of customers. Its 3D sensing optical filters and Engineered Diffusers are deployed in smartphones for facial recognition biometric authentication. In addition, optical filters and sensors deployed in autonomous vehicles and IoT devices offer lucrative growth opportunities for the company.
Other Key Picks
Some other top-ranked stocks in the industry are SeaChange International, Inc. (SEAC - Free Report) and Spirent Communications PLC (SPMYY - Free Report) , carrying a Zacks Rank #2 and Ooma, Inc. (OOMA - Free Report) , sporting a Zacks Rank #1.
SeaChange International has a long-term earnings growth expectation of 10%.
Spirent is currently trading at forward P/E of 17.7X.
Ooma has a long-term earnings growth expectation of 47.7%. It delivered a positive earnings surprise of 124.1%, on average, in the trailing four quarters, beating estimates on each occasion.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>