Trade-Ideas: Ciena Corporation (CIEN) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Ciena Corporation ( CIEN) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Ciena Corporation as such a stock due to the following factors:

  • CIEN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.4 million.
  • CIEN is up 2.2% today from today's close.

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More details on CIEN:

Ciena Corporation provides communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic worldwide. Currently there are 12 analysts that rate Ciena Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Ciena Corporation has been 3.2 million shares per day over the past 30 days. Ciena has a market cap of $2.2 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 2.50 and a short float of 31.4% with 7.63 days to cover. Shares are up 45.2% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Ciena Corporation as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 96.66% and other important driving factors, this stock has surged by 51.89% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • CIENA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CIENA CORP continued to lose money by earning -$1.46 versus -$2.06 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus -$1.46).
  • Net operating cash flow has significantly increased by 81.44% to $42.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 50.33%.
  • 45.95% is the gross profit margin for CIENA CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.22% is in-line with the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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