Why Ciena (CIEN) is a Top Value Stock for the Long-Term

Zacks
13 Feb

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Ciena (CIEN)

Founded in 1992 and headquartered in Hanover, MD, Ciena Corporation is a leading provider of optical networking equipment, software and services.

CIEN boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of Ciena are trading at a forward earnings multiple of 36.4X, as well as a PEG Ratio of 1, a Price/Cash Flow ratio of 47.3X, and a Price/Sales ratio of 3.1X.

Many value investors pay close attention to a company's earnings as well. For CIEN, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $2.44 per share for 2025. Per share CIEN boasts an average earnings surprise of 34.2%.

CIEN should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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