Finisar: Poised To Grow In 2018?

5:33 pm ET, 03 Dec 2017

The Finisar stock (NASDAQ: FNSR) has recently garnered a lot of attention as one of the most undervalued stocks poised to grow in 2018.  

Finisar has one of the broadest optical portfolios and is competing to remain the leader in optics.  The company is well positioned in the high-speed fiber optics market, but analysts also believe one of the growing areas for the Company will be 3-D sensing lasers in smartphones.   

Over the last year, FNSR has returned -39.15%. This return is lower than Technology sector (24.17%), Networking & Communication Devices industry (15.10%), and S&P 500 (20.59%) .

Finisar’s ability to compete is limited by an unfavorable industry structure. Optical suppliers face significant pricing pressure from the hefty customer buying power of network equipment providers, which work hard to eradicate lockup risk by demanding components to be interchangeable and modularizing designs. Technological leads among optical vendors are often short-lived and fade by commercial deployment. Cost advantages in production are hardly sustainable in fiber optics, in our opinion.

Based on Finstead's stock upside analysis (click on the link and type: FNSR upside), Finisar price target upside--a relative difference between the average analyst price target and the stock price--is 43.31%.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Finisar Corporation (FNSR) Stock Guide

Updated at: 10:49 am ET, 16 May 2020

Before we start: if you're looking for FNSR stock price, you can quickly find it out by visiting Finny and typing "FNSR quote". If you're looking for a quick scoop on FNSR stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "FNSR". You'll get all this info in one place. Or you can just type "FNSR news" to get the latest stock news.

Looking to buy or sell Finisar Corporation (FNSR)? Interested in getting the full scoop on FNSR, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this FNSR stock guide, we'll address key questions about FNSR, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. FNSR buy or sell? What is FNSR Finny Score?
2. What are the reasons to buy FNSR? Why should I buy FNSR stock?
3. What are the reasons to sell FNSR? Why should I sell FNSR stock?
4. What are FNSR key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Analysis

1. FNSR buy or sell? What is FNSR Finny Score?

#{finnyScore:null}Our quantitative analysis shows 0 reasons to buy and 1 reason to sell FNSR. FNSR doesn’t have an assigned Finny Score, because we don’t have sufficient data points to score the stock.

2. What are the reasons to buy FNSR? Why should I buy FNSR stock?

Here are the reasons to buy FNSR stock:

  • Finisar earns over 70% of revenue from the data communications market and should see healthy demand thanks to data center network upgrades and a shift to enterprise cloud computing.
  • Although the data communications market is volatile, as a market leader, Finisar usually has the best opportunity to participate in the upside of a boost in industry spending.
  • 3D sensing represents an emerging opportunity for Finisar, and the company is rumored to have won a lucrative deal to supply lasers into Apple's upcoming iPhones.

3. What are the reasons to sell FNSR? Why should I sell FNSR stock?

Let's look at the reasons to sell FNSR stock (i.e., the bear case):

  • The optical industry is highly competitive and we fear that Finisar lacks a sustainable technological advantage or other means to lock in OEM customers in new 100 Gigabit products.
  • There are already a few suppliers who can manufacture the laser diode used in 3D sensing using the VCSEL technology, and other Apple suppliers, such as ams, are seeking to enter the space with acquisitions.
  • It is not guaranteed that 3D sensing will take off this year nor that Finisar is able to profitably secure such revenue from the likes of Apple beyond the next couple of years.
  • FNSR profitability is declining. The YoY profit margin change was -20.87 percentage points. See FNSR profitability chart.

Key Stats

4. What are FNSR key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for FNSR:

Metrics FNSR
Price $23.78
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry Communication Equipment
Sector Technology
Number of Employees 13,000
Market Cap $00
Forward P/E Ratio N/A
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth N/A
Profit Margin N/A

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Use Finny to ask any finance or investment question. Big or small. Personal or general.
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