Back to top

Image: Bigstock

Ciena (CIEN) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Ciena (CIEN - Free Report) closed at $39.71 in the latest trading session, marking a +0.15% move from the prior day. This move lagged the S&P 500's daily gain of 2.21%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 3.86%.

Coming into today, shares of the developer of high-speed networking technology had lost 3.62% in the past month. In that same time, the Computer and Technology sector gained 1.35%, while the S&P 500 gained 0.67%.

Investors will be hoping for strength from CIEN as it approaches its next earnings release. The company is expected to report EPS of $0.63, up 8.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $828.61 million, down 14.4% from the year-ago period.

Investors should also note any 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.

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 has moved 6.86% lower. CIEN is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, CIEN currently has a Forward P/E ratio of 14.81. Its industry sports an average Forward P/E of 14.81, so we one might conclude that CIEN is trading at a no noticeable deviation comparatively.

Meanwhile, CIEN's PEG ratio is currently 0.93. 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 0.93 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 249, which puts it in the bottom 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Ciena Corporation (CIEN) - free report >>

Published in