Ciena Corporation Bucks the Trend for Tech Stocks, Maintains Upward Momentum
You would be hard pressed to find too many tech stocks that still show upward momentum in their charts after the beating the sector took in October. Ciena Corp. (NYSE: CIEN) is one of the few that has been able maintain its momentum and keep within its trend.
We see on the daily chart that the stock has formed a trend channel over the last six months and the stock just bounced off of the lower rail of that channel. It is also worth noting that the stock barely dipped below its 50-day moving average before moving back above it yesterday. Most tech stocks have fallen below their 13-week and 52-week moving averages.
Ciena operates in the communication equipment group within the tech sector. The company’s fundamental indicators are slightly above average. The company has seen decent earnings growth with the most recent quarterly report showing 37% EPS growth on a year over year basis. The company sports a return on equity of 13.6% and a profit margin of 10%.
While the fundamentals are average to slightly above average, the real attraction to Ciena is the fact that it has held up better than the overall market and better than its sector.
CIEN sees MACD Histogram crosses below signal line
CIEN saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 29, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CIEN moved out of overbought territory on June 05, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
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 .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where CIEN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 20, 2025. You may want to consider a long position or call options on CIEN as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for CIEN moved above the 200-day moving average on June 20, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CIEN advanced for three days, in of 333 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.
The Aroon Indicator entered an Uptrend today. In of 213 cases where CIEN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CIEN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (9.712). P/E Ratio (31.942) is within average values for comparable stocks, (95.196). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.815). 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 (17.782).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
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General Information
a provider of communication network equipment, associated software and professional services
Industry TelecommunicationsEquipment
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