We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ceragon Declines 44% in 6 Months: A Buying Opportunity for Investors?
Read MoreHide Full Article
Ceragon Networks Ltd.’s (CRNT - Free Report) shares have witnessed a sharp decrease of 44.2% in the past six months, underperforming the Wireless-Non U.S. industry’s growth of 16.4% and Computer and Technology’s decline of 1.4%. It also underperformed the S&P 500 composite’s fall of 3.2%. In the past three months, shares of CRNT have lost 18.7%.
Image Source: Zacks Investment Research
Recently, the company reported first-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. While earnings declined year over year, revenues grew marginally.
Management reaffirmed its 2025 outlook, projecting revenues between $390 million and $430 million, inclusive of contributions from E2E Technologies, which was consolidated starting February 2025. The company reported revenues of $394.2 million in 2024. Non-GAAP operating margins are expected to be at least 10%, at the lower end of the revenue range. Additionally, the company anticipates year-over-year growth in free cash flow.
Let us discuss the stock’s pros and cons and explore whether this dip signals caution or opportunity for investors.
Product Launch to Boost CRNT’s Top-line Performance
Ceragon is making significant strides in capturing market share in high-growth areas such as millimeter-wave products and private networks. Earlier in this year, CRNT announced the launch of its latest innovative products, IP-100E, IP-50GP and EtherHaul 8020FX, at the Mobile World Congress 2025.
The company’s introduced IP-100E is a cutting-edge, dual-carrier E-band solution powered by Ceragon's proprietary system-on-a-chip. This groundbreaking technology delivers an impressive 25 Gbps from a single unit and up to 40 Gbps in a 4+0 all-outdoor link, making it a game-changer in high-speed connectivity. The company is diversifying its business into the private network business. CRNT’s recent acquisitions of Siklu and End 2 End Technologies, LLC are expected to boost the competitive edge in the private network business. End 2 End Technologies is a leading systems integration and software development company in the United States, while Siklu provides “multi-gigabit wireless fiber” connectivity in urban, suburban and rural areas of North America.
E2E’s bookings in the first quarter of 2025 exceeded expectations, while its revenue contribution aligned with projections. The company continues to anticipate that E2E will become accretive to non-GAAP earnings by the second half of 2025.
CRNT’s Undervaluation: A Buying Opportunity
The recent decline in CRNT shares has created an attractive entry point for investors. The stock now trades at a forward 12-month price-to-earnings (P/E) ratio of 6.91, below the industry’s average of 10.56.
Image Source: Zacks Investment Research
Estimate Revisions for CRNT
In the past 60 days, though analysts have lowered their earnings estimates for the current quarter by 25%, the same for the next quarter has been revised upward by 12.5%. Earnings estimates for the current year have been raised 7.7%, indicating optimism about the company’s long-term growth potential.
Image Source: Zacks Investment Research
Headwinds
CRNT is particularly facing headwinds in select public network segments due to tariff fluctuations and a challenging global macroeconomic environment. In addition, intensified competition from Chinese vendors in regions such as Latin America, Africa and parts of Asia-Pacific is putting pressure on revenues.
Adding to these challenges are volatile foreign exchange rates, which continue to adversely impact the company’s performance. As a global operator reporting in U.S. dollars, Ceragon generates revenues and incurs expenses in multiple foreign currencies. Consequently, fluctuations in exchange rates can significantly hurt its financial results.
How Should Investors Play CRNT Stock?
For investors, the technical outlook supports a strategy of accumulating on price dips while remaining cautious about booking profits during sharp rallies. Investors interested in CRNT may add this stock to their portfolio, considering its discounted valuation, healthy outlook and upward revision in earnings estimates.
At present, CRNT carries a Zacks Rank #2 (Buy), with a VGM Score of B.
In the last reported quarter, JNPR delivered an earnings surprise of 4.88%. Juniper Networks’ long-term earnings growth rate is 12.4%. Its shares have increased 4.6% in the past year.
UI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 29.93%. In the last reported quarter, Ubiquiti delivered an earnings surprise of 61.29%. Its shares have surged 170.1% in the past year.
IDCC earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 160.15%. InterDigital’s long-term earnings growth rate is 15%. Its shares have jumped 90.3% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ceragon Declines 44% in 6 Months: A Buying Opportunity for Investors?
Ceragon Networks Ltd.’s (CRNT - Free Report) shares have witnessed a sharp decrease of 44.2% in the past six months, underperforming the Wireless-Non U.S. industry’s growth of 16.4% and Computer and Technology’s decline of 1.4%. It also underperformed the S&P 500 composite’s fall of 3.2%. In the past three months, shares of CRNT have lost 18.7%.
Image Source: Zacks Investment Research
Recently, the company reported first-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. While earnings declined year over year, revenues grew marginally.
Management reaffirmed its 2025 outlook, projecting revenues between $390 million and $430 million, inclusive of contributions from E2E Technologies, which was consolidated starting February 2025. The company reported revenues of $394.2 million in 2024. Non-GAAP operating margins are expected to be at least 10%, at the lower end of the revenue range. Additionally, the company anticipates year-over-year growth in free cash flow.
Let us discuss the stock’s pros and cons and explore whether this dip signals caution or opportunity for investors.
Product Launch to Boost CRNT’s Top-line Performance
Ceragon is making significant strides in capturing market share in high-growth areas such as millimeter-wave products and private networks. Earlier in this year, CRNT announced the launch of its latest innovative products, IP-100E, IP-50GP and EtherHaul 8020FX, at the Mobile World Congress 2025.
The company’s introduced IP-100E is a cutting-edge, dual-carrier E-band solution powered by Ceragon's proprietary system-on-a-chip. This groundbreaking technology delivers an impressive 25 Gbps from a single unit and up to 40 Gbps in a 4+0 all-outdoor link, making it a game-changer in high-speed connectivity.
The company is diversifying its business into the private network business. CRNT’s recent acquisitions of Siklu and End 2 End Technologies, LLC are expected to boost the competitive edge in the private network business. End 2 End Technologies is a leading systems integration and software development company in the United States, while Siklu provides “multi-gigabit wireless fiber” connectivity in urban, suburban and rural areas of North America.
E2E’s bookings in the first quarter of 2025 exceeded expectations, while its revenue contribution aligned with projections. The company continues to anticipate that E2E will become accretive to non-GAAP earnings by the second half of 2025.
CRNT’s Undervaluation: A Buying Opportunity
The recent decline in CRNT shares has created an attractive entry point for investors. The stock now trades at a forward 12-month price-to-earnings (P/E) ratio of 6.91, below the industry’s average of 10.56.
Image Source: Zacks Investment Research
Estimate Revisions for CRNT
In the past 60 days, though analysts have lowered their earnings estimates for the current quarter by 25%, the same for the next quarter has been revised upward by 12.5%. Earnings estimates for the current year have been raised 7.7%, indicating optimism about the company’s long-term growth potential.
Image Source: Zacks Investment Research
Headwinds
CRNT is particularly facing headwinds in select public network segments due to tariff fluctuations and a challenging global macroeconomic environment. In addition, intensified competition from Chinese vendors in regions such as Latin America, Africa and parts of Asia-Pacific is putting pressure on revenues.
Adding to these challenges are volatile foreign exchange rates, which continue to adversely impact the company’s performance. As a global operator reporting in U.S. dollars, Ceragon generates revenues and incurs expenses in multiple foreign currencies. Consequently, fluctuations in exchange rates can significantly hurt its financial results.
How Should Investors Play CRNT Stock?
For investors, the technical outlook supports a strategy of accumulating on price dips while remaining cautious about booking profits during sharp rallies. Investors interested in CRNT may add this stock to their portfolio, considering its discounted valuation, healthy outlook and upward revision in earnings estimates.
At present, CRNT carries a Zacks Rank #2 (Buy), with a VGM Score of B.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Juniper Networks, Inc. (JNPR - Free Report) , Ubiquiti Inc. (UI - Free Report) and InterDigital, Inc. (IDCC - Free Report) . JNPR presently sports a Zacks Rank #1 (Strong Buy), whereas UI and IDCC carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
In the last reported quarter, JNPR delivered an earnings surprise of 4.88%. Juniper Networks’ long-term earnings growth rate is 12.4%. Its shares have increased 4.6% in the past year.
UI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 29.93%. In the last reported quarter, Ubiquiti delivered an earnings surprise of 61.29%. Its shares have surged 170.1% in the past year.
IDCC earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 160.15%. InterDigital’s long-term earnings growth rate is 15%. Its shares have jumped 90.3% in the past year.