Ciena Corporation (NASDAQ: CIEN) soared on Thursday morning, trading 10% higher. The company posted earnings that handily beat Wall Street expectations.
Based on market cycles, we believe that this stock is likely to head even higher.
The telecommunications company reported earnings per share of $0.53 and total revenue of $899 million, above analyst estimates of $0.48 and $860 million. Management also announced a new $0.5 billion stock repurchase program.
CEO Gary Smith highlighted his optimism based upon Ciena’s ability to, “Intercept market trends, take share, and outperform the market,” all within “a thriving industry environment.”
Our read on the market cycles for CIEN is that the stock has started the new rising phase for a new cycle. This is one of the few technology stocks with a positive cycle trend.
As it just started this cycle, we believe it will resume to the upside with likely higher prices. Our projection is $38-40 or higher in the coming months.
Ciena Corporation (CIEN) Stock Weekly Chart
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
