Viavi Solutions Inc. (VIAV) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Viav Solutions has shown strong stock performance, with an 84.1% increase since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Communication - Components industry [1] Financial Performance - Viav Solutions has consistently exceeded earnings expectations, reporting an EPS of $0.15 against a consensus estimate of $0.13 in its latest earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $0.67 per share on revenues of $1.4 billion, reflecting a 42.55% increase in EPS and a 28.72% increase in revenues [3] - The next fiscal year forecasts earnings of $0.75 per share on revenues of $1.51 billion, indicating a year-over-year change of 12.19% in EPS and 8.18% in revenues [3] Valuation Metrics - Viav Solutions currently trades at 27.6 times the current fiscal year EPS estimates, below the peer industry average of 35.1 times [7] - On a trailing cash flow basis, the stock trades at 29.1 times, compared to the peer group's average of 13.3 times, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - The company holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - Viav Solutions has a Value Score of D, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of B [6] Competitive Position - Viav Solutions remains a strong choice within its industry, with peers like Ooma, Inc. also showing solid performance, including a Zacks Rank of 2 (Buy) and strong earnings expectations [10][11] - The Communication - Components industry is positioned in the top 19% of all industries, indicating favorable conditions for both Viav Solutions and Ooma, Inc. [12]