The U.S. communication components industry has been benefiting from healthy demand trends driven by the fast-track 5G deployment and the transition to cloud and fiber networks. As both consumers and enterprises are using networks more extensively, there is tremendous demand for quality networking components.

The Zacks-defined Communication - Components industry is currently in the top 9% of the Zacks Industry Rank. Over the past year, the industry has provided a massive 342.2% returns, while its year-to-date return is 88.9%. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.

Here, we recommend two bigwigs — Corning Inc. (GLW Quick QuoteGLW - Free Report) and Ciena Corp. (CIEN Quick QuoteCIEN - Free Report) — from the communication components industry for investment. These stocks have provided solid returns in the past month. Yet, their favorable Zacks Rank indicates more room to run in the near term.

The chart below shows the price performance of our two picks in the past month.

Image Source: Zacks Investment Research

Corning Inc.

Corning continues to focus on developing state-of-the-art cover materials, which have been deployed on more than 8 billion devices. GLW offers several products focused on the data center, with a portfolio consisting of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth. 

The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver for GLW in the upcoming quarters. Since both consumers and enterprises are using networks more extensively and the data thus generated is increasingly being used to train AI models, there is tremendous demand for quality networking. 

Additionally, data consumption patterns are changing, with a growing propensity to consume video content, creating the need for faster data transfer. Since optical networks are more efficient and most existing networks are copper-based, the demand for GLW’s optical solutions is particularly strong.

Corning has an expected revenue and earnings growth rate of 12.4% and 25.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% in the last seven days. Currently, Corning has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ciena Corp.

Zacks Rank #1 Ciena has been benefiting from accelerating AI-led demand from cloud and service provider customers. Powered by strong cloud and service provider momentum, CIEN has gained 2 points of optical market share year to date and expects further gains in 2026.

CIEN continues to capitalize on WAN connectivity needs across subsea, long-haul, metro networks and DCI. Better pricing, Hyper-Rail innovation and cost optimization are expected to boost gross margins, ahead. For fiscal 2026, adjusted gross margin is projected at 43.5-44.5%. 

With the first half exceeding expectations and supply challenges being managed, CIEN now expects first- and second-half gross margins to be roughly similar. It is managing supply conditions effectively and expanding capacity, but demand is expected to exceed supply for the next several quarters. For the second quarter, CIEN expects revenues of $1.5 billion (+/-$50 million).

Ciena has an expected revenue and earnings growth rate of 27.9% and more than 100%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% in the last 30 days.