Which Fiber Optics Stock is a Better Buy? -Breaking
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© Reuters. Ciena vs. CommScope – Which Fiber Optics Stock Is a Better Investment?The fiber optics market is expected to expand due to the increasing use of bandwidth-intensive services as well as the rising adoption of fiber optics around the world. Ciena (NYSE:) CommScope, (COMM), should reap the benefits of industry tailwinds. What stock do you think is the best buy? Learn more. Ciena Corporation is a provider of network hardware and software. They also provide services to support transport routing, switching and aggregation. It has four divisions: Networking Platforms and Blue Planet Automation Software and Services; Platform Software and Service and Global Services. CommScope Holding Company, Inc., (NASDAQ:), provides infrastructure solutions to communications and entertainment networks. The company operates in four areas: Broadband Networks, Home Networks, Outdoor Wireless Networks and Venue and Campus Networks.
Remote working has become a common norm. As such, there is a greater demand for internet connections and bandwidth that can be used by businesses as well as individuals. Fiber optics infrastructure is essential. With the return of the omicron Coronavirus and more companies adopting technology-based strategies, demand will continue to grow. The $1 trillion infrastructure bill will likely boost fiber optics’ growth over the next few years. Valuates Reports estimates that fiber optics sales will increase at 7.8% CAGR between 2021-2026. Both CIEN, COMM and COMM can benefit.
CIEN gained 21.2% in the last month while COMM returned 20.4%. Also, CIEN’s 36.1% gains over the past three months are significantly higher than COMM’s negative returns. Moreover, CIEN is the clear winner with 59.1% gains versus COMM’s negative returns in terms of the past year’s performance.
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