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Saturday, September 30, 2023

Ciena Corporation (CIEN)’s Stock is Jumping, Here is Why

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Ciena Corporation (CIEN) shares are trading at higher $48.47 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $52.47.

To add more color to this target, the company’s high over the last year is $61.51 and the low is $30.58. Over the last 52 weeks, CIEN is up 38.49% while the S&P 500 is up 17.22%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CIEN reported a profit of $464.68 million. Ciena Corporation also saw revenues increase to $976.71 million. In addition, CIEN has free cash flow of $245.03 million as of 07-2020. The company’s EBITDA came in at $219.7 million which compares well with its peers.

CIEN booked profit margins of 10.30%, its Return on Equity (ROE) is 16.70%, and its Return on Assets is 9.60%. All told, it is clear that, CIEN needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CIEN has a short ratio of 1.29 and outstanding shares of 154.18M.

Company Outlook

CIEN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.51 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.41. Ciena Corporation CIEN also noted assets of $4.06 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CIEN has historically followed its peers on positive news.

All told, Ciena Corporation CIEN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CIEN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Ciena Corporation CIEN is now commanding a market cap of 7.40B and a float of 153.27M. CIEN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CIEN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CIEN, either long or short, and we have not been compensated for this article.

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