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Find new investment opportunities based on Market Sentiment Indicator. Manage watchlist risk with leading indicator of volatility See what influential analysts and investors are saying about stocks in your watchlist
Most Trending
Most Trending
Ciena Corporation is a multinational telecommunications networking equipment and software Services Company. Ciena's products and solutions are used by service providers, governments, and enterprises worldwide to build and manage their networks. The company's portfolio includes a range of networking solutions, including packet-optical transport, packet networking, and software-defined networking.
The company's top and bottom lines rose impressively over the prior-year period, and it also upgraded its fiscal 2023 revenue guidance.
Let's take a closer look at Ciena's latest quarterly report and check why shares of this networking company could head higher.
With the global optical transport network market expected to grow almost 10% in 2023 to $24 billion and Ciena management expecting to gain a share in this space, the company is set up for another solid year. Additionally, investors can expect Ciena to sustain impressive growth over the long run as well, thanks to the secular growth of the optical communications and networking market.
It’s a business proposition that served the company well in its most recent quarterly readout, for the fiscal first quarter of 2023 (January quarter). Revenue climbed by 25.5% year-over-year to $1.06 billion, coming in ahead of expectations by $100.96 million. Adjusted net income reached $95.6 million, which compared well to the $72.6 million generated in the same period a year ago. That led to adj. EPS of $0.64, improving both on last year’s $0.47 and the $0.36 anticipated on Wall Street.
But this impressive numbers, doesn't tell the all story. it’s the prospect of a new market opening up for Ciena that fuels the bull-case.
According to industry checks, Ciena is about to enter the edge router market, with its own platform called WaveRouter, and this offers a catalyst ahead. The SP Edge Router market can reaches $8B in 2023 and grows with a 2% CAGR 2022-2027. Ciena has no share, so routing is all upside
Ciena is trading at just 2 time's sales right now, which is a discount to the S&P 500's multiple of 2.3. Additionally, the forward earnings multiple of 19.8 represents a discount to the S&P 500's forward earnings multiple of 23.7.
Buying this tech stock at these multiples looks like a no-brainer considering the top and bottom-line growth it is expected to deliver in 2023 and beyond.
1. Ciena smashed Wall Street's estimates last quarter thanks to an improving supply chain and robust demand.
2. Ciena raised its full-year revenue guidance thanks to a big order backlog and its expectation of gaining more share in the optical networking market.
3. Ciena stock is too cheap to ignore, considering the impressive growth that it has been clocking
Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
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Disclaimer:
The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.
The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").
This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
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Disclaimer:
The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.
The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").
This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
