Group 1 - Munro Global Growth Fund reported a return of -0.7% in the December quarter of 2025, with long positions contributing positively while short positions, hedging, and currencies detracted from performance [1] - Global equity markets performed well in 2025, with the S&P 500 increasing by 2.4% and the Nasdaq by 2.3% during the quarter, while Europe and Japan also showed strong performance [1] - The Fund highlighted Ciena Corporation (NYSE:CIEN) as a key stock, which closed at $238.38 per share on January 14, 2026, reflecting a one-month return of 13.13% and a 52-week gain of 183.65% [2] Group 2 - Ciena Corporation (NYSE:CIEN) is recognized for its significant role in networking, particularly for hyperscalers building out data center infrastructure, as noted in the Fund's investor letter [3] - Ciena Corporation has a market capitalization of $33.625 billion, indicating its substantial presence in the network technology sector [2]

Market Overview - U.S. stock markets have started 2026 positively, with all three major stock indexes trading in positive territory, supported by strong domestic economic fundamentals, solid fourth-quarter 2025 earnings projections, and the Fed's accommodative monetary policies [1] Investment Recommendations - Investing in growth stocks is recommended to strengthen portfolios in January, focusing on stocks with aggressive earnings or revenue growth [2] Selected Growth Stocks - Five growth stocks highlighted are Micron Technology Inc. (MU), MongoDB Inc. (MDB), Samsara Inc. (IOT), Ciena Corp. (CIEN), and Kinross Gold Corp. (KGC), all rated Zacks Rank 1 (Strong Buy) with a Growth Score of A [3] Micron Technology Inc. (MU) - Micron is a leader in the AI infrastructure boom, driven by strong demand for high-bandwidth memory (HBM) solutions, with record sales in the data center market [6] - The growing adoption of AI servers is reshaping the DRAM market, increasing demand for high-capacity DIMMs and low-power server DRAM, which Micron is capitalizing on [7] - Micron's expected revenue and earnings growth rates are 89.3% and over 100%, respectively, for the current year, with a 64.2% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [9] MongoDB Inc. (MDB) - MongoDB has expanded its Atlas platform into analytics, targeting agile development and modern workloads, benefiting from the generative AI trend [10] - The company has seen continued platform adoption across enterprises, with a focus on larger enterprises supporting deal sizes and sales efficiency [11] - MongoDB's expected revenue and earnings growth rates are 17.5% and 17%, respectively, for the next year, with a 29.6% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [13] Samsara Inc. (IOT) - Samsara connects physical operations data to its connected operations cloud, developing sensor systems that utilize wireless sensors and cloud-based analytics [14] - The expected revenue and earnings growth rates for Samsara are 19.8% and 12.9%, respectively, for the next year, with a 1.8% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [15] Ciena Corp. (CIEN) - Ciena reported a 20% year-over-year top-line gain and 69.5% EPS growth, driven by AI-led demand from cloud and service provider customers [16] - The company expects fiscal 2026 revenue of $5.7-$6.1 billion, nearly 24% growth at the midpoint, up from a prior estimate of 17% [17] - Ciena's expected revenue and earnings growth rates are 24.2% and over 100%, respectively, for the current year, with a 19.7% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [19] Kinross Gold Corp. (KGC) - Kinross Gold has a strong production profile and a promising pipeline of exploration and development projects expected to boost production and cash flow [20] - The company is focusing on organic growth through its Tasiast mine, with expansions expected to increase throughput and production [21] - Kinross Gold's expected revenue and earnings growth rates are 11% and 35.2%, respectively, for the current year, with a 12.9% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [22]

Group 1: Ciena Corporation (CIEN) - Ciena Corporation is a network technology company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 22.3% over the last 60 days [1] - The company has a PEG ratio of 1.11, significantly lower than the industry average of 5.29, and possesses a Growth Score of A [1] Group 2: Skillsoft Corp. (SKIL) - Skillsoft Corp. is a digital learning solutions provider with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 19.8% over the last 60 days [2] - The company has a PEG ratio of 0.20, compared to the industry average of 0.76, and possesses a Growth Score of B [2] Group 3: Patria Investments Limited (PAX) - Patria Investments Limited is a private equity company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.6% over the last 60 days [3] - The company has a PEG ratio of 0.81, lower than the industry average of 1.70, and possesses a Growth Score of A [3]

Core Viewpoint - Ciena Corporation (CIEN) is rated as a strong buy due to the market's outdated perception of optical networking, which is seen as a traditional telecom expenditure, while management is positioning the company for growth in the AI-driven capacity market [1] Group 1: Company Analysis - Ciena is described as being in a phase of aggressive growth, with expectations of becoming highly profitable within 1-2 years [1] - The management's strategy indicates a shift towards capitalizing on opportunities presented by advancements in AI technology [1] Group 2: Investment Philosophy - The investment approach emphasizes long-term discipline and consistent alpha generation, with a focus on companies that exhibit strong growth potential [1] - The analysis aims to empower underprivileged investors and enhance financial literacy [1]

Core Insights - The company initially guided for 8% to 11% growth but ended up delivering an impressive 19% growth, indicating significant outperformance [1] - The primary driver of this growth was attributed to advancements in AI, which positively impacted various customer segments and the overall portfolio [2] Group 1 - The company experienced a strong year, leading to continuous upward revisions of revenue guidance throughout the year [1] - The rebound of service providers contributed positively after a few years of challenges [2]

Ciena (NYSE:CIEN) FY Conference Summary Company Overview - **Company**: Ciena Corporation - **Industry**: Communications and Networking - **Conference Date**: January 13, 2026 Key Points Financial Performance - Ciena initially guided for 8%-11% growth but achieved a remarkable 19% growth in revenue for the year [7][8] - The company reported $7.8 billion in orders and over $4.8 billion in revenue, ending the year with a backlog exceeding $5 billion [49] Drivers of Growth - The primary driver of growth was attributed to AI, with significant demand from cloud providers, including hyperscalers and new entrants known as NeoScalers [7][8] - The optical systems business saw over 20% growth, with a notable increase in market share, reaching over 30% globally (excluding China) [10][28] Market Dynamics - There is a hyper-competitive environment among cloud providers, leading to unprecedented demand for connectivity infrastructure to support AI training clusters [8][12] - Ciena's cloud customer base grew over 50% year-over-year, with expectations of 70% growth in hyperscale CapEx in 2025 [11] Product Innovations - Ciena has successfully entered the pluggable transceiver market, achieving approximately 15% market share and doubling its business to just under $170 million [19] - The introduction of the 800ZR pluggable transceiver is expected to significantly impact production volume and profitability in 2026 [20] Managed Optical Fiber Networks (MOFN) - MOFN is a growing segment, with over 30 MOFN WANs globally, and it grew about 150% year-over-year in 2025 [30][34] - This segment is expected to approach 50% of Ciena's revenues when combined with direct data center interconnect business [34] New Technologies and Applications - Ciena is developing MultiRail technology to densify existing optical amplifier architecture, which could represent a multi-billion dollar opportunity [66] - The company is also focusing on coherent optics for data centers, anticipating a shift from IMDD to coherent technology as data rates increase [69] Supply Chain and Operational Efficiency - Ciena is facing supply chain challenges, particularly with specialized optical components, but is actively working to address these issues [50][81] - The company has guided for flat operating expenses year-over-year despite significant revenue growth, indicating operational efficiencies and strategic reallocations [90][91] Competitive Landscape - Ciena competes with major players like Nokia, Infinera, and Cisco, with a focus on maintaining a strong position in the optical systems market [96] - The competitive landscape is evolving, with potential consolidation among NeoScalers and ongoing investments in technology and infrastructure [60] Future Outlook - Ciena expects continued growth driven by AI and cloud infrastructure, with a projected CapEx growth rate of 20% among hyperscalers and NeoScalers through the end of the decade [60] - The company aims for mid-40s gross margin as a waypoint in the coming years, despite current headwinds from production ramp-up and input pricing [84] M&A Strategy - Ciena has a history of strategic acquisitions, such as Nubis, to bolster its core business and fill technology gaps [101] Conclusion Ciena is positioned for significant growth driven by AI and cloud demand, with a strong focus on innovation in optical technologies and strategic market positioning. The company is navigating supply chain challenges while maintaining operational efficiency and exploring new market opportunities.

Group 1: Ciena Corporation (CIEN) - Ciena Corporation is a network technology company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 22.3% over the last 60 days [1] - The company has a PEG ratio of 1.04, significantly lower than the industry average of 5.15 [1] - Ciena possesses a Growth Score of A [1] Group 2: Skillsoft Corp. (SKIL) - Skillsoft Corp. is a digital learning solutions provider with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 19.8% over the last 60 days [2] - The company has a PEG ratio of 0.23, compared to the industry average of 0.77 [2] - Skillsoft possesses a Growth Score of B [2] Group 3: Forum Energy Technologies, Inc. (FET) - Forum Energy Technologies is an energy equipment and services company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 31% over the last 60 days [3] - The company has a PEG ratio of 0.21, significantly lower than the industry average of 1.15 [3] - Forum Energy Technologies possesses a Growth Score of A [3]

The last quarter has been a phenomenal vote of confidence for a coming structural swing up towards the adoption of optical connectivity solutions and components for the AI DC (data center).Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, ...

Core Viewpoint - Ciena is experiencing significant investor interest due to its strong position as a supplier of hardware essential for AI systems, reflected in a nearly 15% increase in stock price in December 2025 following impressive fiscal Q4 results and subsequent analyst upgrades [1][6]. Financial Performance - Ciena reported $1.35 billion in revenue for the quarter, a robust 20% increase compared to the same period in 2024. Non-GAAP net income surged 68% to nearly $133 million, equating to $0.91 per share [2][3]. - The company exceeded consensus analyst estimates, which were $1.29 billion in revenue and a non-GAAP net profit of $0.77 per share [3]. Market Position and Future Outlook - Ciena is positioned as a key player in the high-speed connectivity market, particularly benefiting from the ongoing demand for AI infrastructure [4][8]. - The company provided guidance for fiscal 2026, expecting revenue between $5.7 billion and $6.1 billion, with an adjusted operating margin of 16% to 18%. The lower end of this range represents a 19% increase over fiscal 2025 results [5]. Analyst Sentiment - Following the earnings release, analysts have positively revised their price targets for Ciena, with notable increases such as Raymond James' Simon Leopold raising his fair value assessment from $120 to $250 per share while maintaining a buy recommendation [7][8]. - Analysts express optimism regarding management's ability to expand the business during this growth phase driven by AI [8].

Core Insights - Investors should consider adding stocks with strong liquidity to their portfolios for potential solid gains, as liquidity indicates a company's ability to meet short-term obligations and supports business growth [1][3] Group 1: Stock Recommendations - Four top-ranked stocks recommended for portfolio inclusion are Ciena Corporation (CIEN), EverQuote, Inc. (EVER), Pan American Silver Corp. (PAAS), and GigaCloud Technology Inc. (GCT) [2][10] - Each of these stocks has been screened for strong liquidity and asset efficiency, meeting strict criteria for growth potential [10][11] Group 2: Financial Metrics - Current Ratio: A ratio below 1 indicates more liabilities than assets, while a range of 1-3 is considered ideal for assessing financial health [5] - Quick Ratio: A desirable quick ratio is more than 1, indicating a company's ability to pay short-term obligations without relying on inventory [6] - Cash Ratio: A cash ratio greater than 1 is favorable, but excessively high ratios may suggest inefficiency in cash utilization [7] Group 3: Company-Specific Insights EverQuote, Inc. (EVER) - EverQuote reported total revenues of $173.9 million, exceeding estimates by 4.6% and growing 20% year-over-year, with automotive insurance revenues increasing by 21% [13][14] - The company has a Growth Score of A and a trailing four-quarter earnings surprise of 37.16% on average [14] Ciena Corporation (CIEN) - Ciena's fiscal fourth-quarter 2025 results showed a 20% year-over-year revenue increase and 69.5% EPS growth, driven by AI-led demand [15][16] - The company raised its fiscal 2026 revenue outlook to $5.7-$6.1 billion, indicating nearly 24% growth at the midpoint [17][18] Pan American Silver Corp. (PAAS) - The acquisition of MAG Silver Corp. is expected to enhance operations and increase silver production guidance to 22-25 million ounces for 2025 [19][20] - The company has a Growth Score of B and a trailing four-quarter earnings surprise of 31.63% on average [20] GigaCloud Technology Inc. (GCT) - GigaCloud anticipates fourth-quarter 2025 revenues between $328 million and $344 million, with third-quarter revenues of $333 million reflecting a 10% year-over-year increase [22][23] - The company has a Growth Score of B and a trailing four-quarter earnings surprise of 45.6% on average [23]