Why Oclaro, Inc. Could Be a Gold Mine for Value Investors
2017 was a dismal year for optical components maker Oclaro (NASDAQ: OCLR), which lost over 20% of its market value on concerns about its slowing growth. However, that decline reduced Oclaro's P/E to 8, compared to an industry average of 27 for semiconductor makers. Therefore this stock might be a good value play for patient investors who are willing to ride out its cyclical headwinds.
Oclaro produces optical components, modules, and subsystems for the service provider, enterprise, and data center markets. Over the past few years, the growing use of streaming video, cloud-based apps, app virtualization, and other data-intensive tasks boosted demand for Oclaro's products -- particularly its "100G and beyond" portfolio of high-speed optical products for network upgrades.
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Source: Fool.com