10 Best 5G Stocks to Invest in According to Analysts

4. Ciena Corporation (NYSE:CIEN)

Analyst Upside: 15.89%

Number of Hedge Fund Holders: 58

Ciena Corporation (NYSE:CIEN) is on our list of the 10 best 5G stocks to invest in according to analysts. With a Neutral rating, UBS analysts raised their price target for Ciena Corporation (NYSE:CIEN) from $73 to $78 on June 6. As hyperscalers raise their infrastructure investments, the analysts reported that Direct Cloud-related revenue increased by 85% year-over-year, which enabled the company’s revenue grow by 2.86% over the previous 12 months.

Despite encouraging revenue numbers, Ciena’s gross margin of 41% came in below UBS’s forecast of 42.3% and its target of the “low 40s,” owing to the company’s product mix shifting towards pluggables and RLS products. With a projected gross margin of roughly 42% for FY25, this change is expected to continue having an impact on the company’s financials.

Moreover, UBS analysts voiced concerns about the company’s ability to reach long-term goals for gross margin and operating margin, despite Ciena Corporation (NYSE:CIEN) raising its FY25 revenue growth estimates to roughly 14% from the prior 11%, indicating robust demand across its portfolio.

Ciena Corporation (NYSE:CIEN) offers network operators solutions to handle transport, routing, orchestration, and maintenance by delivering a wide range of products and services focused on optical networking, network management, and automation. With its 4G/5G convergent xHaul technology and services, the company is also a leading name in 5G.