Core Insights - The article highlights three stocks with strong growth characteristics and buy rankings for investors to consider as of December 31st Group 1: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and coastline renourishment [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 6.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Great Lakes Dredge & Dock has a PEG ratio of 1, significantly lower than the industry average of 3.08, and possesses a Growth Score of A [2] Group 2: Ciena (CIEN) - Ciena is a leading provider of optical networking equipment, software, and services [2] - The company also carries a Zacks Rank of 1 and has experienced an 18.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Ciena has a PEG ratio of 1.11 compared to the industry average of 5.12, and it holds a Growth Score of A [2] Group 3: Insulet (PODD) - Insulet is a leading developer, manufacturer, and marketer of the Omnipod Insulin Management System [3] - The company has a Zacks Rank of 1 and has seen a 6.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Insulet has a PEG ratio of 2.02, which is lower than the industry average of 2.43, and it also possesses a Growth Score of A [3]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's financial health and future growth potential by analyzing earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings estimates, aiding investors in timing their stock purchases [5] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify stocks with high return potential, with 1 (Strong Buy) stocks averaging a +23.93% annual return since 1988 [7][9] - There are typically over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] Stock Highlight: Ciena Corporation - Ciena Corporation (CIEN) is a leading provider of optical networking equipment and services, currently rated 2 (Buy) with a VGM Score of B [11] - CIEN has a Momentum Style Score of A, with shares increasing by 3.3% over the past four weeks [11] - The Zacks Consensus Estimate for CIEN's fiscal 2025 earnings has risen by $0.01 to $2.49 per share, with an average earnings surprise of +13.9% [12]

Industry Overview - The industry is focused on developing scalable network architecture and demand-driven video solutions, providing telecom products and services that include small cells, routers, and antennas [4] - Companies are investing in R&D to support the convergence of wireline and wireless networks, which is expected to minimize service delivery costs and enhance broadband competition [2] Demand Trends - There is a significant demand for quality networking components driven by increased network usage among consumers and enterprises, particularly for video content [9] - The shift towards optical networks is strong due to their efficiency compared to traditional copper-based networks, with firms offering products like optical fiber and connectors to meet evolving customer needs [9] Key Players - Corning Inc., Ciena Corp., and Ooma, Inc. are positioned to benefit from the rising demand for scalable infrastructure, particularly with the growth of IoT, fiber densification, and 5G rollout [5] - Corning has seen an 85% stock surge over the past year, with a long-term earnings growth expectation of 18.2% [16][17] - Ciena has experienced a 199.7% stock increase in the past year, with a long-term earnings growth expectation of 47.6% [18][19] - Ooma focuses on cloud-based communications solutions and has delivered a 15.9% earnings surprise on average over the trailing four quarters [22][23] Financial Performance - The Zacks Communication - Components industry has outperformed the S&P 500, rallying 106% over the past year compared to the S&P 500's 22.3% increase [14] - The industry currently trades at a trailing 12-month price-to-book (P/B) ratio of 6.12, below the S&P 500's 7.49X and the sector's 11.85X [15] Challenges - The industry faces challenges such as high customer inventory levels, elevated raw material prices due to geopolitical tensions, and high capital expenditures for infrastructure upgrades, which have impacted profitability [6][11][10]

Core Insights - Ciena Corporation's shares have increased by 143% over the past year, significantly outperforming the Zacks Communication-Components industry, the Zacks Computer and Technology sector, and the S&P 500 composite, which grew by 88%, 30.5%, and 19.8% respectively [1][8] - The company is currently trading near its 52-week high of $134.31, closing at $132.5 as of September 11, 2025 [2] Company Overview - Ciena, based in Hanover, MD, is a leading provider of optical networking equipment, software, and services, with reporting segments including Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services [3] Market Trends and Growth Drivers - The demand for Ciena's products is being driven by increased network traffic and bandwidth needs due to AI and cloud adoption, with cloud and service providers investing heavily in networks to support AI growth [5][10] - Ciena's Navigator Network Control Suite has seen over 30% order growth in early fiscal 2025, and the company anticipates around 17% revenue growth in fiscal 2026, reaching its three-year CAGR target ahead of schedule [5][11] Product and Technology Advancements - Ciena's Adaptive Network combines AI-driven automation, programmable infrastructure, and advanced analytics to manage services across complex networks, enhancing network performance and predicting issues [4][10] - The company is focusing R&D on Coherent Optical Systems, Interconnects, and Coherent Routing, while reducing investment in residential broadband [5] Financial Performance and Projections - Ciena expects Interconnect revenues to at least double in 2025, with further growth anticipated in 2026, supported by strong demand for packet optical transport and switching products [9] - Management plans to maintain operating expenses at around $1.5 billion in fiscal 2026, with expectations to reach a 15-16% operating margin target a year earlier than planned [11] Competitive Positioning - Ciena's portfolio, including WaveLogic, RLS, Navigator, and Interconnect solutions, remains an industry standard, with WaveLogic 6 providing a significant technology advantage [10] - The company is the only provider with a 1.6Tbps WAN solution, securing industry-first AI infrastructure wins in North America and expanding deals with global service providers [10] Valuation Metrics - Ciena's shares are trading at a premium with a price/earnings ratio of 40.98, compared to the industry average of 31.86 [17] - In comparison, peers such as Corning Incorporated, Viavi Solutions Inc., and Altice USA, Inc. are trading at multiples of 27.58, 21.11, and negative 12.38 respectively [18]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by evaluating one-week price changes and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to identify the best opportunities [9] Stock Analysis: Ciena Corporation - Ciena Corporation, a leading provider of optical networking equipment, holds a Zacks Rank of 3 (Hold) and a VGM Score of A, making it noteworthy for momentum investors [11] - The company has seen an upward revision in earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing to $2.26 per share, and it boasts an average earnings surprise of +15.3% [12]