An interesting stock that came up in some of our conversations today is Ciena Corporation (NYSE:CIEN). At current price of $33.92, the shares have already added 0.62 points (1.86% higher) from its previous close of $33.3. Should you buy or avoid them? The stock sets an active trading volume day with a reported 1630591 contracts so far this session. CIEN shares had a relatively better volume day versus average trading capacity of 2.63 million shares, but with a 0.15 billion float and a -7.88% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CIEN stock indicates that the average analyst price target is $44.42 per share. This means the stock has a potential increase of 30.96% from where the CIEN share price has been trading recently which is between $32.76 and $33.46. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $32.
The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “4 Best 5G Stocks to Buy as the Trend Heats Up” and dated May 15, 2019.
During the recent trading session for Ciena Corporation (NYSE:CIEN), the company witnessed their stock drop by $-1.19 over a week and tumble down $-4.21 from the price 20 days ago. When compared to their established 52-week high of $45.7, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 05/03/19. The recent low of $22.99 stood for a -25.78% since 05/31/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.05 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Ciena Corporation, the two-week RSI stands at 30.25. This figure suggests that CIEN stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CIEN readings is similarly very revealing as it has a stochastic reading of 10.51% at this stage. This figure means that CIEN share price today is being overbought.
Technical chart claims that Ciena Corporation (CIEN) would settle between $33.59/share to $33.87/share level. However, if the stock price goes below the $32.89 mark, then the market for Ciena Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $32.47 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.3. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Northland Capital raised their recommendation on shares of CIEN from Market Perform to Outperform in their opinion released on April 15. Dougherty & Company analysts again handed out a Buy recommendation to Ciena Corporation (NYSE:CIEN) stock but they lifted target price for the shares in a flash note issued to investors on March 06. The target price has been raised from $40 to $50. Analysts at B. Riley FBR are sticking to their Buy stance. However, on March 06, they lifted price target for these shares to $48 from $42.20.
CIEN equity has an average rating of 2.15, with the figure leaning towards a bullish end. 20 analysts who tracked the company were contacted by Reuters. Amongst them, 8 rated the stock as a hold while the remaining 12 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 12 analysts rated Ciena Corporation (NYSE:CIEN) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, CIEN stock price is currently trading at 14.54X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.61 while for the average stock in the same group, the multiple is 1.74. Ciena Corporation current P/E ratio of 24.69 means it is trading at a premium against its industry’s 19.56. In the past 5 years, this ratio for the stock has been fluctuating between 2.86 and 248.51.
Ciena Corporation (CIEN)’s current-quarter revenues are projected to climb by nearly 11.84% to hit $816400, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 8.2% from $3.09 billion to a noteworthy $3.35 billion. At the other end of the current quarter income statement, Ciena Corporation is expected to see its adjusted earnings surge by roughly 73.91% to hit $0.4 per share. For the fiscal year, CIEN’s earnings are projected to climb by roughly 30.22% to hit $1.81 per share.