Quick Win by the Algorithm

Ceragon Networks has experienced a strong run, increasing 40.67% over the course of two weeks. The short-term rally came after Ceragon Networks released its fourth quarter earnings. The results were positive, revealing $86.7M in revenue – which was $11.5M over expectations.

Nevertheless, the current rally is not entirely driven by the recent results, rather the long term growth prospects driving the upward trend.

A significant driver is the future of 5G, and Cergaon Networks’ current business. Furthermore, 5G has recently made its world debut at the Winter Olympics in South Korea.

CEO Ira Palti stated:

“The common ground is this, 5G is about next generation technology to support all sorts of new services and user experiences, enabled by connecting billions of devices to the internet, some stationary and some moving, but collectively transmitting more data. So, that means orders of magnitude more devices, with vastly different types of traffic, from low kilobytes of data from a meter or wearable device to massive data content for artificial intelligence or augmented reality applications.

Plus, different requirements from applications like autonomous driving that require ultra-low latency. These requirements cannot be addressed by a one-size-fits-all network.

For mobile network operators, 5G is about three things: capacity, complexity – and because of the two, it must also be about costs.

All these challenges apply to the backhaul portion of every network and we are extremely well-positioned to help operators deal with all those challenges – not only in providing additional backhaul capacity.

When you are a carrier faced with providing vastly greater capacity using scarce and expensive resources like spectrum, tower space, and electricity, you can’t afford to look at the issues as a simple matter of buying more of the same kind of equipment as cheaply as possible.

You need best-of-breed. Operators have to do something about all their costs of delivering services and they’ll have to think ahead and plan ahead.

We do not expect a sudden wave of huge contracts for 5G equipment providing a CapEx windfall to equipment vendors – not next year or the year after.

Instead, operators will spread their investment over a longer period than they did with 3G or 4G, but they will begin now, before 5G is officially here.”

Whilst 5G is not officially here, and large orders have not yet been placed, the gradual process has already begun and this is reflected in the stock price of CRNT.

On January 11th, 2018, I Know First issued a bullish 14 day forecast for Ceragon Networks (NASDAQ:CRNT). The forecast showed a signal of 20.72 and a predictability of 0.34. In accordance with the forecast, CRNT’s stock returned 40.67% over this period, solidifying another quick win by the I Know First algorithm.

Current I Know First subscribers received this bullish CRNT forecast on January 11th, 2018. 

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How to read the I Know First Forecast

Ceragon Networks Ltd. (NASDAQ:CRNT) provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice, data, and multimedia services worldwide. Its wireless backhaul solutions use microwave technology to transfer telecommunication traffic between base stations, small sells, and the core of the service provider’s network. The company also provides wireless fronthaul solutions that use microwave technology for communication between LTE/LTE-advanced base band digital unit stations and remote radio heads. In addition, it offers IP-20 Platform solutions for various short-haul and long-haul applications, including FibeAir IP-20G and IP-20GX, FibeAir IP-20N/IP-20A, FibeAir IP-20C, FibeAir IP-20S, FibeAir IP-20E, FibeAir IP-20C HP, FibeAir IP-20LH, Evolution IP-20 LH, and PointLink. Further, the company provides network management system for managing large scale wireless back haul networks; and network and radio planning, site survey, solutions development, network rollout, maintenance, training, and other services. Ceragon Networks Ltd. provides its services to smart-phone applications, such as Internet browsing, social networking, image sharing, music, and video applications; oil and gas companies; public safety network operators; business and public institutions; broadcasters; energy utilities; and private communications networks. The company sells its products through direct sales, original equipment manufacturers, resellers, distributors, and system integrators. The company was formerly known as Giganet Ltd. and changed its name to Ceragon Networks Ltd. in September 2000. Ceragon Networks Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.