Ciena Corporation
Ciena Corporation (CIEN) has exhibited tremendous relative strength since we added the stock to the High-Growth Investments Buy List in the March Monthly Issue. CIEN is up more than 50% in the past two months, versus the S&P 500’s 4% rise.
The reason for the outperformance is simple: Ciena is benefiting from the recent surge in AI-related and data center stocks. You may recall that Ciena is a global leader in connectivity. The company provides optical networking systems and software that support increasing bandwidth demand and help its customers thrive in the AI economy.
Cloud and service providers account for the bulk of demand for Ciena’s solutions – and this robust demand is anticipated to add to its top and bottom lines for the foreseeable future.
Ciena is expected to announce its second-quarter results for fiscal year 2026 in early June. Second-quarter earnings are forecast to surge 247.6% year-over-year to $1.46 per share. Revenue is expected to rise 33.6% year-over-year to $1.5 billion.
Analysts have also increased earnings estimates by 20.7% in the past two months, so Ciena is likely gearing up for a fourth-straight quarterly earnings surprise. CIEN is a Moderately Aggressive buy below $624.
SOM Technicals:
3-27-26: Closed at 399.50. Trade pressures are down. Volumes are bearish. The next target down is 362.38. Bullish above 410.00.
4-11-26: Closed at 496.02. Trade pressures are up. Volumes are bullish. The next target up is the prior high at 513.49. 467.61 is bearish.
4-18-26: Closed at 507.43. Trade pressures are up. Volumes are bullish. the next target up is 541.07. 434.81 is bearish.
4-24-26: Closed at 520.80. Trade pressures are up off the neutral zone. volumes are bullish. The next target up is 531.76. 485.16 is bearish.
Coherent Corporation
Coherent Corporation (COHR) is best known for developing the first laser which used a rain gutter as a key component! Today, Coherent is a global photonics leader, providing laser systems and components, laser measurement and control products and precision optics.
The company boasts that its solutions are vital to the operations of data centers, communications and industrial leaders. In fact, Coherent’s transceivers and other solutions have been used for AI and machine learning since their first deployment in the cloud. And its two main types of lasers are currently offered for high-speed datacom applications.
Not too surprisingly, then, that Coherent and NVIDIA Corporation (NVDA) have formed a strategic partnership. Under the terms of the multi-year agreement, the two companies will strive to advance next-generation AI infrastructure by boosting R&D and manufacturing capacity. According to NVIDIA CEO Jensen Huang, together, Coherent and NVIDIA will pioneer “next-generation silicon photonics to enable AI infrastructure at unprecedented scale, speed and energy efficiency.”
Coherent will release results for its third quarter in fiscal year 2026 on May 6. The consensus estimate calls for earnings of $1.40 per share on $1.78 billion in revenue, compared to earnings of $0.91 per share and revenue of $1.5 billion in the third quarter of 2025. Earnings estimates have been revised slightly higher in the past three months. COHR is a Conservative buy below $381.
SOM Technicals:
4-24-26: Closed at 336.09. Trade pressures are down into the neutral zone. Volumes are bearish. The next target down is 322.48. 343.64 is bullish.
Comfort Systems USA, Inc.
Comfort Systems USA, Inc. (FIX) has emerged as a clear winner from the data center buildout. The company is primarily a contractor that provides electrical, mechanical and plumbing systems. In other words, Comfort Systems installs and maintains HVAC and electrical systems, plumbing and piping that are vital to new data center builds, as well as other industrial and commercial buildings.
And demand for its services is clearly robust: Comfort Systems revealed that its backlog nearly doubled in 2025 to $11.94 billion, compared to $5.99 billion at the end of 2024.
Clearly, demand remains strong, as Comfort Systems reported that its backlog grew to $12.45 billion in the first quarter. First-quarter revenue also rose 56.5% year-over-year to $2.87 billion, topping estimates of $2.39 billion.
First-quarter earnings surged 118.8% year-over-year to $370.4 million, or $10.51 per share. Analysts expected earnings of $6.81 per share, so FIX posted a 54.3% earnings surprise.
Company management commented, “Considering recent bookings, underlying persistent demand, and our strong pipelines, we are optimistic about our prospects for the next several quarters.” FIX is a Conservative buy below $1,926.
SOM Technicals:
3-27-26: Closed at 1365.37. Trade pressures are down. Volumes are bearish. The next target down is 1329.03. Bullish above 1411.
4-11-26: Closed at 1592.84. Trade pressures are up. Volumes are bullish. The next target up is 1635.41. 1529.09 is bearish.
4-18-26: Closed at 1650.47. Trade pressures are up but turning down. Volumes are bullish. The next target up is 1660.37. 1534.57 is bearish.
4-24-26: Closed at 1720.50. Trade pressures are up but declining. Volumes are bearish. The next target down is 1681.06. 1767 is bullish.
GE Vernova, Inc.
GE Vernova, Inc. (GEV) is well-positioned to profit from rising power demand driven by data centers, cloud computing, AI and 5G. Data centers, in particular, cannot handle interruptions to power; they need power 24/7, with little to no downtime. GE Vernova offers reliable energy solutions that ensure data centers remain connected to the grid.
And that’s why the company has experienced increased demand for its solutions.
During the first quarter, orders increased more than 71% year-over-year to $18.3 billion, and its backlog grew by more than 13 billion. First-quarter revenue rose 16% year-over-year to $9.3 billion, topping estimates of $9.27 billion. The company’s power unit accounted for $4.97 billion, and its electrification unit accounted for $2.96 billion.
First-quarter earnings surged 1,700% year-over-year to $4.75 billion, or $17.44 per share. Adjusted earnings came in at $1.98 per share, beating estimates for $1.67 per share by 18.6%.
Given the accelerating demand for its solutions, especially its power and electrification solutions, GE Vernova expects to reach at least 110 gigawatts of combined gas turbine backlog this year. The company also now anticipates 2026 revenue between $44.5 billion and $45.5 billion, up from prior estimates of $44 billion to $45 billion. That represents 16.9% to 19.5% annual revenue growth. GEV is a Conservative buy below $1,288.
SOM Technicals:
9-26-25: Closed at 605.17. Trade pressures are down. Volumes are bearish. The next target down is 576.55.
10-5-25: Closed at 594.99. Trade pressures are down. Volumes are bearish. The next target down is 556.63.
10-11-25: Closed at 603.21. Trade pressures are down. Volumes are bearish. The next target down is 577.08.
10-17-25: Closed at 600.00. Trade pressures are down. Volumes are bearish. The next target down is 555.63.
11-8-25: Closed at 575.13. Trade pressures are down but rising to the neutral zone. Volumes remain bearish. The next target down is 482.04.
11-15-25: Closed at 578.31. Trade pressures are down but rising. Volumes are bullish. The next target up is 594.10.
3-27-26: Closed at 849.49. Trade pressures are down. Volumes are bearish. The next target down is 830.45. Bullish above 887.
4-11-26: Closed at 993.50. Trade pressures are up. Volumes are bullish. The next target up is 1042. 948.45 is bearish.
4-18-26: Closed at 1003.99. Trade pressures are up but declining to the neutral zone. Volumes are bullish. The next target up is 1011.12. 912.29 is bearish.
4-24-26: Closed at 1148.84. Trade pressures are up. Volumes are bullish. The next target up is 1189.94. 1095.56 is bearish.
Seagate Technology Holdings plc
Seagate Technology Holdings plc (STX) understands what is at the heart of the AI Revolution: data. There is a plethora of text, pictures and videos created using AI – and all this data needs to be stored somewhere, whether locally, in a data center or in the cloud. And that’s where Seagate Technology enters the picture.
Seagate Technology develops the best of the best AI-capable hard drives. It is a global leader in storage, with more than four zettabytes of capacity across the cloud, the edge and endpoint devices. As the AI Revolution heats up, demand for these storage devices will continue to accelerate, likely becoming apparent in the company’s upcoming earnings announcement.
Seagate Technology is scheduled to report its third-quarter results fiscal year 2026 after the market closes on Tuesday, April 28.
Third-quarter earnings are forecast to soar 83.7% year-over-year to $3.49 per share. Revenue is expected to grow 36.9% year-over-year to $2.96 billion. The analyst community has revised earnings estimates 18.4% higher in the past three months, so another quarterly earnings surprise is likely. STX is a Moderately Aggressive buy below $698.
SOM Technicals:
12-20-25: Closed at 300.01. Trade pressures are up. Volumes are neutral. The next target up is 312.94.
12-26-25: Closed at 286.22. Trade pressures are uup. Volumes are neutral. The next target down is 278.82.
1-2-26: Closed at 288.10. Trade pressures are up. Volumes are bullish. The next target up is 294.35.
1-10-26: Closed at 304.48. Trade pressures are down, but rising. Volumes are bullish. The next target up is 310.73.
1-24-26: Closed at 346.10. Trade pressures are up. Volumes are up. The next target up is 351.06.
1-30-26: Closed at 403.00. Trade pressures are up but declining. Volumes are neutral. The next target down is 379.01.
2-7-26: Closed at 427.90. Trade pressures are down into the neutral zone. Volumes are neutral. The next target up is 468.32.
2-14-26: Closed at 423.00. Trade pressures are up. Volumes are neutral. The next target up is 447.54.
2-20-26: Closed at 411.15. Trade pressures are down. Volumes are neutral. The next target down is 381.01.
3-27-26: Closed at 377. Trade pressures are down. Volumes are bearish. The next target down is 367.16. Bullish above 402.41.
4-11-26: Closed at 503.70. Trade pressures are up. Volumes are bearish. The next target up is 516.11. 484.45 is bearish.
4-18-26: Closed at 547.75. Trade pressures are up. Volumes are bullish. The next target up is 587.19. 531.19 is bearish.
4-24-26: Closed at 586.88. Trade pressures are up. Volumes are bullish. The next target up is 614.00. 563.96 is bearish.
