After the tech stock rally somewhat simmered pre-4th of July the focus is back on stocks that are showing relative stability and long-term positivity. Ciena Corp (NYSE: CIEN) the $3.5Bn telecommunications equipment company is an interesting prospect to watch for value investors.
After reaching the max returns of more than 30% over last year, the stock has come back to its March levels of $24-25 now and it looks like it will continue to be stable and growing from here.
Significantly, as the price started climbing, multiple analyst opinions came forward and Confidence Meter went from 50% to 69% within less than a week. Then analyst interest waned slightly as people dug deeper into the stock and Confidence Meter fell back 50%, subsequently the price came down from $27.5 to under $25. Now there has been recent analyst interest again and we might see Confidence Meter playing a role once more in the next couple of months.
The Foundation Seems Strong
Unsurprisingly, institutional investing in CIEN seems have gone up with firms like Coamerica Bank and Rennaisance Technologies increasing their holdings over the last quarter. What they’ve probably looked at, among other things, is that fundamentally, a couple of things are looking good about Ciena Corp. The Cash position seems healthy at over $620mn and the Revenue Forecast looks decidedly robust.
For the next three quarters, revenues are predicted to climb by crowd analysts and given the current position of strength that might enable the company to keep making new investments since the sector is in a huge evolutionary phase.
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