Core Viewpoint - The current market environment is characterized by heightened volatility due to the recent announcement of "Liberation Day" tariffs by President Donald Trump, which has initiated a new trade war and created uncertainty regarding its impact on the U.S. economy and Federal Reserve policy [1] Group 1: Stock Selection Criteria - The conventional method of selecting stocks emphasizes the importance of steady sales growth, with companies like Meritage Homes Corporation, Zoom Communications Inc., Edison International, Super Micro Computer Inc., and Coherent Corp. identified as potential investment opportunities [2] - Evaluating a company's revenue growth is crucial, as increasing sales indicate potential for expanding the customer base, while stagnant or declining sales may signal underlying challenges [3] - Robust revenue growth is essential for long-term profitability, as consistent sales increases are necessary for sustained bottom-line expansion [4] Group 2: Financial Health Assessment - Sales growth alone does not provide a complete picture of a company's financial health; assessing cash position alongside revenues is a more effective investment strategy [5] - A strong cash balance and steady cash flow offer flexibility for strategic decisions, operational stability, and future investments [5] Group 3: Stock Screening Parameters - Stocks are shortlisted based on criteria such as 5-Year Historical Sales Growth (%) greater than the industry average and Cash Flow exceeding $500 million [6] - Additional factors include a Price-to-Sales (P/S) Ratio lower than the industry average, and positive changes in sales estimate revisions compared to the industry [7] - Operating Margin (average over the last five years) greater than 5% and Return on Equity (ROE) greater than 5% are also important metrics for evaluating stock potential [8][9] Group 4: Featured Stocks with Sales Growth - Meritage Homes is expected to have a sales growth rate of 5% for 2025 and currently holds a Zacks Rank of 2 [10] - Zoom Communications anticipates a sales growth rate of 2.7% for 2025, also holding a Zacks Rank of 2 [11] - Edison International's sales are projected to rise by 2.2% in 2025, with a Zacks Rank of 2 [12] - Super Micro Computer is expected to see a significant sales growth of 59.2% for 2025, maintaining a Zacks Rank of 2 [13] - Coherent is projected to experience a 21% increase in sales for fiscal 2025, currently holding a Zacks Rank of 2 [14]

Core Viewpoint - Analyst Mike Genovese upgraded Coherent Corp from Neutral to Buy, lowering the price target from $115 to $85, citing a positive outlook for AI transceivers in the second half of 2025 driven by strong demand for Coherent ZR transceivers in Data Center Interconnect and telecom applications [1] Group 1: Market Outlook - The analyst is optimistic about the transceiver market through 2030, viewing co-packaged optics (CPO) as an opportunity due to new products like Ultra-High-Power lasers and Optical Circuit Switches [2] - Coherent is expected to see a sequential acceleration in 800G Datacom transceiver sales in the September and December quarters, driven by shipments of Blackwell GPUs ordered in the first half of 2025 [6] Group 2: Company Performance - Coherent has achieved approximately $300 million in quarterly sales from 800G Datacom transceivers, making it the second-largest player in global market share after Innolight [5] - Telecom revenues for Coherent grew 11% year over year in the second quarter of 2025, following a 17% growth in the first quarter [6] Group 3: Product Development and Strategy - Coherent is making progress in commercializing 200G VCSELs and 100G and 200G EMLs, with management expressing confidence in the ramp-up of new products [3][7] - The company has the most extensive portfolio of CPO components among vendors and is participating in OCS deployments with significant Hyper Scalers [8] Group 4: Competitive Landscape - Lumentum Holdings is currently ahead in EML capacity, but Coherent is close to ramping up its own EML production [9] - Coherent's manufacturing locations face varying tariff rates, including 24% on Malaysian goods and 54% on Chinese goods, which may impact cost structures [10]

Core Viewpoint - The author has been contributing to investment analysis since 2011, focusing on value investing and has extensive experience in the financial sector, particularly during significant market events like the dot-com bubble [1]. Group 1 - The author holds a beneficial long position in COHR shares, indicating a personal investment interest in the company [2]. - The article reflects the author's personal opinions and is not influenced by any external compensation or business relationships with mentioned companies [2]. Group 2 - Seeking Alpha emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3]. - The platform clarifies that it does not provide personalized investment advice and that the views expressed may not represent the entire organization [3].

SAXONBURG, Pa., April 01, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR) ("Coherent," "We," or the "Company"), a global leader in materials, networking, and lasers, today announced that it will host an Analyst and Investor Day on Wednesday, May 28, 2025, at 9:00 a.m. EDT at the New York Stock Exchange. The event will feature presentations and a Q&A session with members of the Company's executive leadership team, including CEO Jim Anderson and CFO Sherri Luther. Presentations will be delivered in perso ...

SAXONBURG, Pa., April 01, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a global leader in photonics, will demonstrate a 1.6T-SR8 optical transceiver at OFC 2025. This transceiver incorporates advanced 200G vertical cavity surface emitting lasers (VCSELs) and photodiodes produced by Coherent. VCSEL-based transceivers have established dominance in data center environments due to their exceptional cost-effectiveness and low power consumption for short-reach connections. Additionally, surging demand fr ...

About Coherent Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com. SAXONBURG, Pa., March 31, 2025 (GLOBE NEWSWIRE) -- C ...

SAXONBURG, Pa., March 31, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE:COHR), a global leader in photonics, announced today that it will showcase its new products and technologies for next- generation optical communications networks at OFC 2025, Apr 1-3 at the Moscone Center in San Francisco, Booth #1519. Coherent will bring also expert insights thanks to its thought leaders that will present at panels, technical sessions, and other OFC events. RECENT PRODUCT ANNOUNCEMENTS Optical Transceivers Optimized fo ...

SAXONBURG, Pa., March 31, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a global leader in photonics, introduces an innovative optical transport solution that combines fundamental advances in high-efficiency pump lasers with novel resource pooling concepts to dramatically increase line system capacity while lowering the size and power consumption required to do so. This sublinear scaling up of capacity through "multi-rail" transmission is essential to keep pace with growth in traffic between Data Ce ...

Core Insights - Coherent Corp. has launched the industry's first 100G ZR QSFP28-DCO with 0dBm optical output power, aimed at metro and regional ROADM-based line systems [1][2] Product Features - The 100G ZR QSFP28-DCO is the only high-power coherent transceiver in the compact QSFP28 form factor, reducing power dissipation and network footprint [2] - It is designed for IP-over-DWDM deployments, eliminating the need for expensive muxponders and transponders, thus allowing network operators to scale efficiently while enhancing performance [2] - An optional Tunable Optical Filter is available to support colorless ROADM configurations, increasing the product's versatility [2] Market Context - The pluggable 100G coherent market is rapidly growing as networks transition from 10G DWDM, with Coherent being the sole provider of a QSFP28 solution [3] - The introduction of a high-power option enables operation over existing ROADM networks, expanding the 100ZR market into metro applications [3] Industry Impact - Higher-power coherent pluggables are essential for cost-effective IP-over-DWDM architectures, particularly in metro and regional networks [3] - The new 100G ZR QSFP28-DCO enhances network efficiency and scalability, simplifying ROADM-based transport [3] - The product is built with Coherent's vertical integration capabilities, including InP photonic integrated circuits and in-house digital signal processing [4] Strategic Partnerships - Coherent collaborates with Adtran to advance coherent DSP technology, enabling operators to expand capacity and reduce costs while transitioning to flexible optical networks [3] - Juniper Networks highlights the transceiver's role in upgrading metro DWDM networks and addressing capacity bottlenecks for bandwidth-intensive services [4]

SAXONBURG, Pa., March 28, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE:COHR), a global leader in photonics, announces general availability of its 800G ZR/ZR+ transceiver in QSFP-DD form factor. This launch reinforces the company's commitment to next-generation optical networking.  The 800G ZR/ZR+ addresses increasing demand for high-speed, efficient, and scalable metro, regional, and data center interconnect applications. Its pluggable form factor supports IP-over-DWDM deployments, enabling seamless integr ...