VIAV Should I Buy
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Viavi Solutions Inc (VIAV) does not currently present a strong buy opportunity for a beginner, long-term investor. While the stock has positive momentum and bullish technical indicators, the company's financial performance in the latest quarter shows significant declines in net income and EPS, which could pose risks for long-term growth. Additionally, the recent insider sale by the CEO and lack of strong proprietary trading signals further suggest a cautious approach.
The technical indicators are bullish with the MACD histogram above 0 and positively contracting, RSI in the neutral zone at 68.47, and moving averages showing a bullish trend (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of 26.02, with resistance at 27.753 and support at 24.286.
Analysts have raised price targets significantly, with most ratings being Buy or Outperform.
The company reported a solid beat-and-raise quarter and has strong growth prospects in AI and data center markets.
The Spirent acquisition expands its addressable market and strengthens its position in high-speed Ethernet validation.
The latest financials show a significant drop in net income (-628.57% YoY) and EPS (-625.00% YoY), raising concerns about profitability.
Insider selling by the CEO, who sold a substantial number of shares recently, could indicate a lack of confidence in near-term stock performance.
No recent congress trading data or proprietary trading signals to support a strong buy decision.
In Q2 2026, revenue increased by 36.37% YoY to $369.3M, driven by strong demand in AI and data center markets. However, net income dropped to -$48.1M (-628.57% YoY), and EPS fell to -$0.21 (-625.00% YoY). Gross margin also declined to 55.02%, down 6.76% YoY, indicating cost pressures.
Analysts are broadly positive on VIAV, with multiple firms raising price targets recently. The average price target is around $25-$28, reflecting optimism about the company's growth in AI infrastructure and data center markets. However, UBS maintains a Neutral rating, signaling some caution.
