Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Don’t Buy JDS Uniphase Without Looking At These Stocks First

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

JDS Uniphase (Nasdaq: JDSU  ) has undergone quite a transformation over the past decade. As one of the most successful tech-boom shooting stars, JDSU shares peaked at more than $1,000 in March 2000 and lost 80% of their value within the next 12 months. In March 2009, JDSU hit rock bottom and sold for $2.21 a share. But the stock is up 88% over the past 12 months, as many investors are impressed with the retooling of JDS Uniphase from a jack-of-all-trades in fiberoptic technology into a portfolio of businesses that include new higher-margin consumer products.

A lot of the excitement is centered on JDSU's Advanced Optical Technologies business unit. New innovations from this group include advanced holographic and color-shifting technology (to do things like authenticate your credit card), as well as a cutting-edge gesture recognition system that will allow you to control your television, computer, and/or video game without a remote control or mouse.

In May, JDSU stumbled, and shares are down more than 20% after failing to meet analysts’ revenue expectations. Still, revenues were up 19% year-over-year, and CEO Tom Waechter trumpeted the company's highest quarterly bookings in two years. Will JDSU’s new technology businesses continue to drive its share price up, or are there other information technology companies that are in a better position to put more money in your pocket?

We asked our Motley Fool CAPS community to nominate two communications equipment industry peers that are likely to outperform JDSU Uniphase.

And the nominees are
Our 165,000-plus-member CAPS community views Sonus Networks (Nasdaq: SONS  ) as a better opportunity among similarly sized companies in communications equipment. Sonus provides switching technology for wireless and wireline VoIP carriers and is well-positioned to grow as more and more voice traffic transitions to IP networks. Sonus is a five-star stock, the highest rating given by our CAPS community, and JDSU currently stands as a three-star stock. CAPS member HOBBES5200 sees an exponential growth story in Sonus in this pitch from January:

This is the next [Cisco Systems]. They have been idle for 8 years but are still here slowly getting in with all big players. They will be huge. They have a chance to be a billion dollar company 5-10 years out. That would an appreciation of 5 fold at least.

Five-fold growth wouldn’t get Sonus Networks into Cisco’s neighborhood, but would make Sonus comparable in size to industry competitor Brocade Communications (Nasdaq: BRCD  ) . And while we’re looking for alternatives to JDSU, it’s worth noting that things are looking up at Brocade. The company has swung to a net profit from a net loss over the past year, is throwing off a lot of cash, has been rumored to be an acquisition target, and has seen a recent decline in its share price. All are events that make Brocade another interesting alternative to JDSU.

Make your vote count!
Do you agree that Sonus Networks or Brocade Communications may be better buys than JDS Uniphase? Click over to CAPS and let the rest of the community know what you think.

John Keeling doesn't own shares of any company mentioned. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1246052, ~/Articles/ArticleHandler.aspx, 10/22/2016 9:33:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 12 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
BRCD $8.69 Down -0.07 -0.80%
Brocade Communicat… CAPS Rating: ****
SONS $7.34 Down -0.17 -2.26%
Sonus Networks CAPS Rating: ***
VIAV $7.19 Down -0.10 -1.37%
Viavi Solutions CAPS Rating: ***