Ciena Corp. hit the lower rail of an upward sloped channel and a bullish signal was triggered at the same time
Ciena Corporation (NYSE: CIEN) provides hardware, software, and services for networking systems worldwide. The company has seen its stock trend higher since the fourth quarter of 2017. Over the last 11 months, the stock has been moving higher within a trend channel.
The stock moved above the upper rail of the trend channel in February but pulled back in March and that brought the stock down to the lower rail of the channel. We see on the daily chart that the stock is in oversold territory based on the stochastic readings, but the indicators made a bullish crossover on March 26.
The Tickeron AI Prediction tool generated a bullish signal on Ciena on March 25 and that signal calls for a 4% increase in the price of the stock over the next month. The signal showed a confidence level of 89%. Previous predictions on the stock have been accurate 80% of the time.
The fundamentals for Ciena show mixed results. Earnings grew by 120% in the most recent earnings report, but they had been declining by an average of 1% per year over the last three years.
Sales jumped by 20% in the most recent quarter and have been growing by an average of 8% per year over the last three years. The company’s return on equity is average at 10.4% and so is the profit margin at 9.2%.
CIEN's RSI Indicator is staying in oversold zone for 4 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 14 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CIEN advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
CIEN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day moving average for CIEN crossed bearishly below the 50-day moving average on March 18, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CIEN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CIEN entered a downward trend on April 18, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CIEN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.433) is normal, around the industry mean (9.820). P/E Ratio (31.942) is within average values for comparable stocks, (88.290). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.728). CIEN has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (1.672) is also within normal values, averaging (23.653).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CIEN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of communication network equipment, associated software and professional services
Industry TelecommunicationsEquipment