VIAVI Solutions Inc: Tech Stock Up 40% in 2019, Has Additional Near-Term 70% Upside Potential

iStock.com/peshkov VIAVI Solutions Inc Q3 Results Come in at High End of Guidance

Viavi Solutions Inc (NASDAQ:VIAV) was a great tech stock that got hammered during the fourth quarter marketwide sell-off; so much so that it tumbled into penny stock territory. But you can’t keep an excellent tech stock down.

Since the start of 2019, VIAVI’s share price has advanced 35%, due largely to the January effect coupled with strong second-quarter results and just-announced third-quarter results, which came in at the high end of guidance.

While VIAVI’s 40% gains in 2019 are impressive, easily outpacing the Nasdaq’s year-to-date gain of approximately 23.5%, the company has a lot more upside potential. Wall Street analysts are projecting a 2019 high for VIAVI Solutions of $16.00, which is just 16% from current levels; that seems too conservative.

Thanks to momentum in the technology sector, strong financial results, and solid full-year projection, VIAVI’s share price could climb an additional 70% from current levels, ending out 2019 at around $24.50 per share.

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VIAVI Solutions Overview

VIAVI Solutions is a communication equipment company that provides network testing, monitoring and assurance solutions, and optical technologies to communication service providers around the world. (Source: “About Us,” VIAVI Solutions Inc, last accessed May 3, 2019.)

The company’s business segments include Network and Service Enablement, and Optical Security and Performance. Of particular note, VIAVI Solutions is the first company with saleable test systems for validating 5G network performance.

Formerly known as JDS Uniphase Corporation, VIAVI’s customers come from virtually every industry and sector, including consumer electronics, anti-counterfeiting, industrial, aerospace, telecommunication, mobility and cable operators, chip and infrastructure vendors, agriculture, pharmaceuticals, government, and other markets.

VIAVI Solutions Inc Stock VIAV Stock Information Market Cap $3.1 billion Beta 0.46 52-Week Change 40.4% 52-Week High $13.80 52-Week Low $9.17 Shares Outstanding

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