Ciena (CIEN - Free Report) closed at $37.41 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's 0.06% loss on the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.24%.
Coming into today, shares of the developer of high-speed networking technology had lost 1.72% in the past month. In that same time, the Computer and Technology sector gained 6.28%, while the S&P 500 gained 4.72%.
CIEN will be looking to display strength as it nears its next earnings release, which is expected to be December 12, 2019. On that day, CIEN is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 18.87%. Our most recent consensus estimate is calling for quarterly revenue of $964.80 million, up 7.28% from the year-ago period.
Any recent changes to analyst estimates for CIEN should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CIEN currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CIEN has a Forward P/E ratio of 14.73 right now. For comparison, its industry has an average Forward P/E of 14.73, which means CIEN is trading at a no noticeable deviation to the group.
Also, we should mention that CIEN has a PEG ratio of 0.85. 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 0.85 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 104, putting it in the top 41% 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.
To follow CIEN in the coming trading sessions, be sure to utilize Zacks.com.