Photonics - General Science

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Anders Bylund (Finisar): Optical networking components maker Finisar had a rough March, setting the stock up for a 20% price drop so far in 2017. The company missed analyst expectations in its third-quarter earnings report and set a low bar for fourth-quarter expectations.

But some analysts shrugged off that short-term noise to focus on management's rosy projections for soon-to-start fiscal year 2018. Chinese telecoms are gearing up for massive infrastructure upgrades in the second half of this calendar year, setting Finisar up for big sales of its high-end network transceivers.

"We are currently sold out on this product," said Finisar CEO Jerry Rawls on the third-quarter earnings call. "Despite our continuing to add capacity, we expect that sold-out situation to last at least through the end of calendar year 2017."

Based on that optimistic outlook and the sudden availability of a 20% share price discount, several analysts upgraded the stock and some even raised their target prices. The average of analysts' one-year price targets sits 65% above current share prices, and some see the stock doubling in 12 months.

Optical networking offers plenty of fantastic high-growth investment opportunities right now, with Finisar leading the charge. The company might set up a merger with sector rival Oclaro (NASDAQ:OCLR), since both CEOs have made it clear that they would like to see some consolidation in the industry. That would be another easy share price boost, right on top of the already mouthwatering projections discussed above.

https://www.fool.com/investing/2017/04/14/3-stocks-that-could-double-your-money.aspx?yptr=yahoo