Gary Bourgeault
Long only, research analyst, portfolio strategy, media

Is ADTRAN's Share Price Getting Too Sexy?

With such low expectations in the telecom sector, vendors like ADTRAN (NASDAQ:ADTN) which serve the market, also had low expectations for them, as evidenced by earlier reports from companies like F5 Networks (NASDAQ:FFIV), which got crushed after its dismal numbers fell below estimates.

So when ADTRAN surprised with an earnings beat, the stock has been almost rewarded as much as F5 Networks was punished; rising from $18.55 on April 5 to trading at over $24.00 a share on June 7. F5 on the other hand was trading at $90.82 on April 4, and after its earnings report, plummeted to $73.21. It clawed its way back to $84.12 on May 30, and plunged again to $76.83 on...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details