In the latest trading session, Ciena (CIEN - Free Report) closed at $37.12, marking a +0.92% move from the previous day. This change outpaced the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the developer of high-speed networking technology had lost 0.05% over the past month. This has lagged the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 2.46% in that time.
Wall Street will be looking for positivity from CIEN as it approaches its next earnings report date. In that report, analysts expect CIEN to post earnings of $0.56 per share. This would mark year-over-year growth of 5.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $964.80 million, up 7.28% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CIEN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CIEN currently has a Zacks Rank of #2 (Buy).
Investors should also note CIEN's current valuation metrics, including its Forward P/E ratio of 17.03. For comparison, its industry has an average Forward P/E of 17.03, which means CIEN is trading at a no noticeable deviation to the group.
It is also worth noting that CIEN currently has a PEG ratio of 0.98. 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. Fiber Optics stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Fiber Optics industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
To follow CIEN in the coming trading sessions, be sure to utilize Zacks.com.