Top 3 Technology Stocks Under $ 20 - Infinera

Here Are the Top 3 Technology Stocks Under $ 20, 1 - Infinera

1. Infinera

Infinera Corporation is a telecommunications service provider based in San Jose, California. Vertically integrated manufacturer of optical transmission equipment and IP transport technologies for the market. Infinera is a pioneer in the design and manufacture of large-scale photonic integrated circuits. Existing fiber networks transfer data at speeds of 100G to 200G over long distances and at speeds of 400G to 600G over shorter distances. Many service providers are currently testing 800G connections.

Infinera, Ciena (NYSE: CIEN) and Huawei are the three leading players in the 800G market.

However, blacklists are preventing many companies from purchasing Huawei products due to sanctions and security concerns.

This leaves Infinera and Ciena as the most preferred options outside of China.

Since most investors do not want to put all their eggs in one basket, they will split their 800G contracts between Infinera and Ciena. Infinera recently released a fourth-quarter report that missed analysts' revenue expectations, but its growth is expected to accelerate in the second half of the year as the company launches 800G and ICE6 products. Infinera's revenue increased by 3 percent in fiscal 2020, despite a net loss. Analysts predict that in fiscal year 2021, profitability will increase for the company and revenue will rise by 5 percent. Based on these estimates, Infinera is now trading at 22x futures and 1.2x sales in the current year.

These are extremely low valuations for a stock that is at the peak of a cyclical reversal.

    Source: https://www.fool.com/ You may also be interested in:

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