Optical Cable (US:OCC) ZACKS·2026-03-13 16:11Core Viewpoint - Zacks Investment Research has initiated coverage of Optical Cable Corporation (OCC) with an "Outperform" recommendation, indicating potential for the company to outperform the broader market as demand trends improve and operating leverage emerges [1] Company Overview - Optical Cable designs and manufactures fiber-optic and copper cabling and connectivity solutions for enterprise networks, data centers, and specialized environments, serving customers in approximately 50 countries [2] Demand and Revenue Growth - The investment case is centered on improving demand visibility and accelerating revenue growth, highlighted by a significant increase in order backlog, which reached approximately $10.4 million at the end of January 31, 2026, compared to $7.3 million in the prior quarter and $6.6 million in the year-ago period [3] - International sales increased roughly 18% year over year in the most recent quarter, significantly outpacing domestic trends, indicating growing traction for the company's products in global infrastructure markets [6] Strategic Partnerships - A collaboration with Lightera, established in July 2025, allows Optical Cable to combine product portfolios, broadening the range of fiber and connectivity solutions for enterprise and data infrastructure projects [4] Market Exposure - The company benefits from exposure to multiple infrastructure-related end markets, including enterprise networking, industrial environments, renewable energy projects, broadcast infrastructure, and military applications, providing resilience due to varying demand cycles across these industries [5] Valuation Perspective - The stock is currently trading at about 0.97 times trailing 12-month enterprise value to sales, in line with the Zacks Fiber Optics subindustry but below the broader technology sector and S&P 500, which trade at significantly higher multiples [9] - Shares are trading at approximately 4.3 times book value, again below sector averages [9]