Ciena (CIEN - Free Report) closed the most recent trading day at $36.14, moving -0.07% from the previous trading session. This change was narrower than the S&P 500's 0.16% loss on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Heading into today, shares of the developer of high-speed networking technology had lost 3.24% over the past month, lagging the Computer and Technology sector's loss of 0.03% and the S&P 500's loss of 0.19% in that time.
CIEN will be looking to display strength as it nears its next earnings release, which is expected to be June 6, 2019. In that report, analysts expect CIEN to post earnings of $0.41 per share. This would mark year-over-year growth of 78.26%. Our most recent consensus estimate is calling for quarterly revenue of $818.47 million, up 12.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.81 per share and revenue of $3.35 billion, which would represent changes of +30.22% and +8.23%, respectively, from the prior year.
Any recent changes to analyst estimates for CIEN should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CIEN is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note CIEN's current valuation metrics, including its Forward P/E ratio of 20.01. Its industry sports an average Forward P/E of 18.82, so we one might conclude that CIEN is trading at a premium comparatively.
Meanwhile, CIEN's PEG ratio is currently 1.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Fiber Optics stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Fiber Optics industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.