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Ciena (CIEN) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Ciena (CIEN - Free Report) closed at $42.52, marking a -0.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the developer of high-speed networking technology had lost 1.43% in the past month. In that same time, the Computer and Technology sector lost 3.22%, while the S&P 500 lost 3.57%.

Wall Street will be looking for positivity from CIEN as it approaches its next earnings report date. The company is expected to report EPS of $0.57, up 18.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $930.51 million, up 13.64% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $3.53 billion, which would represent changes of +43.88% and +14.02%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CIEN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has moved 0.76% higher. CIEN is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that CIEN has a Forward P/E ratio of 21.3 right now. This represents a premium compared to its industry's average Forward P/E of 20.53.

Investors should also note that CIEN has a PEG ratio of 1.23 right now. 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. The Fiber Optics industry currently had an average PEG ratio of 1.44 as of yesterday's close.

The Fiber Optics industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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