Tech Stocks to Buy: Finisar Corporation (FNSR)
Forward P/E Ratio: 9
YTD Performance: -24%
Finisar Corporation (NASDAQ:FNSR) is an optical network hardware supplier. Its third-quarter earnings report in March started the bear phase in its stock. At a forward P/E of 9, Finisar is highly underrated. Sales for 100G and 3D sensing lagged, due to one customer. Once it works through its technical issues and adapts to the customer needs, the business will improve.
Finisar benefited from strong customer demand for 100G and ROADM line cards last quarter. This trend should continue. Sales of 100G QSFP are especially strong. This trend will continue as management expects it will sustain the current capacity, selling out the product this year.
The 3D sensing space should add positively to gross margins. For example, the VCSEL 3D sensing applications, Wavelength Selective Switch and QSFP28 all have high demand.