Today’s Featured Stock
Valued at $63.33 billion, Ciena (CIEN) is a leading provider of optical networking equipment, software, and services.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CIEN checks those boxes. Since the Trend Seeker issued a new “buy” on March 10, CIEN stock is up 46.43%.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
www.barchart.comBarchart Technical Indicators for Ciena
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Ciena scored an all-time high of $499.39 on April 8.
Ciena has a Weighted Alpha of +779.12. CIEN has a 100% “Buy” opinion from Barchart. The stock has gained 814.33% over the past 52 weeks. Ciena has its Trend Seeker “Buy” signal intact. The stock recently traded at $494.01 with a 50-day moving average of $341.59. CIEN has made 14 new highs and gained 67.93% over the past month. Relative Strength Index (RSI) is at 68.99. There’s a technical support level around $477.32.Don’t Forget the Fundamentals
$63.33 billion market capitalization. 189.63x price-earnings ratio. Analysts predict an increase in revenue of 28.27% this year and another 20.19% next year. Earnings are estimated to increase 132.44% this year and an additional 34.52% next year.Analyst and Investor Sentiment on Ciena
The Wall Street analysts followed by Barchart give the stock 11 “Strong Buy,” 2 “Moderate Buy,” and 5 “Hold” opinions with price targets between $240 and $470. Value Line gives the stock its “Above Average” rating with price targets from $228 to $612. CFRA’s MarketScope rates the stock a “Buy.” Morningstar thinks the stock is 258% overvalued with a fair value of $125. 1,619 investors following the stock on Motley Fool think it will beat the market while 405 think it won't. 43,580 investors are following the stock on Seeking Alpha, which rates it a “Hold.” Short interest is 3.57% of the float with 1.52 days to cover the float.The Bottom Line on Ciena
There is a lot to consider here. Analysts project double-digit growth in both the top and bottom lines. With the recent run-up in price, Morningstar thinks a price-earnings ratio of 189.63x makes the stock way overvalued. The short sellers only short 3.57% of the float, which is unusual for a stock with such a high P/E. Short-term traders may squeeze a little bit more, but long-term investors may be late to the party.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Should You Chase the Rally in Royal Caribbean Stock Today? Seaport Research Warns on AVGO Stock: Broadcom Is Confronting the ‘Limits of the Industry’ This S&P 500 Stock Is Up 814% in Just the Past Year Broadcom Is Making AI Chips with Google. Does That Make AVGO Stock a Buy Now?