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One of the best-performing stocks so far this year has been
JDS Uniphase(JDSU), a provider of communications test and measurement solutions and optical products for the telecommunications service providers, wireless operates, cable operators and network equipment manufactures. This stock is off to a red-hot start in 2011 with shares up around 82%. The company just reported a blowout quarter and raised its guidance for the first time in years.
Most of the current success for JDS Uniphase, which traders used to refer to as "just don't sell us, is due to the strong growth and demand for optical components that enable high-seed voice, video and data communications for a large range of business and consumer applications. The real driver in the growth for consumer applications is coming from the
Internet tsunami, which has consumers snapping up tablet computers and smartphones. All of that new demand for these wireless mobile devices is driving Internet traffic through the roof, which is in turn driving demand for JDS Uniphase's optical products.
The company is also benefiting by selling its testing equipment to telecom operates who're now moving towards 4G wireless technology which is faster and more capable of handling heavy Internet traffic. As long as the trend towards faster networks for telecom operates and the rapidly increasing adoption of smartphones and table computers continues, then JDS should continue to shine and produce nice gains for investors.
From a technical standpoint, shares of JDS have some solid support down at $22 a share and some very strong overhead resistance at around $29 a share. Market players should look to buy this stock on any notable weakness and look for a breakout over $29 for confirmation that the trend higher will continue.
JDS Uniphase has shown up on the list of
stocks with large insider selling in recent weeks -- and
more than once. And according to Insider Monkey, it's one of
20 stocks analysts expect to dive the most.