• Ciena Corporation (CIEN) soared by 20% on Thursday, after the company missed earnings but beat revenue expectations.
  • Based on its market cycles, we believe the stock has even more room to run.

The company reported earnings per share of $0.58 and total revenue of $968 million, compared to analyst estimates of $0.63 and $964 million. Guidance from management was in line with market expectations.

CEO Gary Smith explained that, “Our innovation, diversification and scale uniquely position us to continue taking share while delivering improved operating margin and driving sustained EPS growth in 2020.”

Our approach to stock analysis uses market cycles to project price action. CEIN is in the rising phase of its current cycle, having broken resistance from the weekly chart. With a breakaway gap, this rally is strong and we see high odds it will continue to move higher, testing the old high near $47

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