Stock on Watch: Ciena Corporation (CIEN)

Company Profile:

Ciena Corporation provides hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. The company’s Networking Platforms segment offers hardware networking solutions optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching. The company’s Software and Software-Related Services segment offers network management solutions. Its Global Services segment provides consulting and network design, installation and deployment, maintenance support, and training services. Ciena Corporation was founded in 1992 and is headquartered in Hanover, Maryland.

Recent News:

For the fiscal fourth quarter 2017, Ciena reported revenue of $744.4 million as compared to $716.2 million for the fiscal fourth quarter 2016. For fiscal year 2017, Ciena reported revenue of $2.80 billion, as compared to $2.60 billion for fiscal year 2016.

On Jan. 31, 2018, Jisc, which operates the busiest National Research and Education Network (NREN) in Europe by volume of data carried, is deploying Ciena’s (CIEN) 6500 packet-optical platform powered by WaveLogic Ai coherent optics to provide unprecedented high-capacity 400G wavelength connectivity.

on Dec. 7, 2017, its Board of Directors has authorized a program to repurchase up to $300 million of the company’s common stock through the end of fiscal 2020.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CIEN’s strengths can be seen in its strong growth, better profitability and better efficiency compared with its peers. Its revenue and net income have increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 55.86 with positive bias. We rate Ciena Corporation (CIEN) a BUY.

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