Viavi Solutions Inc. (VIAV) Stock Faces Higher Risks Forward After Forming Bearish Wedge Down Pattern

May 18, 2018 - By Larry Park

Viavi Solutions Inc. (NASDAQ:VIAV) Logo

The stock of Viavi Solutions Inc. (VIAV) formed a down wedge with $9.60 target or 5.00 % below today’s $10.10 share price. The 6 months wedge indicates high risk for the $2.29B company. If the $9.60 price target is reached, the company will be worth $114.30M less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock increased 1.00% or $0.1 during the last trading session, reaching $10.1. About 1.09 million shares traded. Viavi Solutions Inc. (NASDAQ:VIAV) has declined 11.57% since May 18, 2017 and is downtrending. It has underperformed by 23.12% the S&P500.

Analysts await Viavi Solutions Inc. (NASDAQ:VIAV) to report earnings on August, 21. They expect $0.08 earnings per share, down 11.11 % or $0.01 from last year’s $0.09 per share. VIAV’s profit will be $18.11 million for 31.56 P/E if the $0.08 EPS becomes a reality. After $0.10 actual earnings per share reported by Viavi Solutions Inc. for the previous quarter, Wall Street now forecasts -20.00 % negative EPS growth.

More notable recent Viavi Solutions Inc. (NASDAQ:VIAV) news were published by: Nasdaq.com which released: “5 Potential Winners as US-China Trade Conflict Lingers” on May 16, 2018, also Benzinga.com with their article: “Argus Projects ‘Sustainable Acceleration’ In Viavi’s EPS Growth” published on May 08, 2018, Globenewswire.com published: “Market Trends Toward New Normal in Viavi Solutions, Lattice Semiconductor, Abraxas Petroleum, American Outdoor …” on May 10, 2018. More interesting news about Viavi Solutions Inc. (NASDAQ:VIAV) were released by: Seekingalpha.com and their article: “Viavi Is Faced With Significant Opportunities” published on May 08, 2018 as well as Streetinsider.com‘s news article titled: “After-Hours Stock Movers 05/03: (CVGI) (VIAV) (SHAK) Higher; (FLR) (ANET) (TSRO) Lower (more…)” with publication date: May 03, 2018.

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, and enterprises and their ecosystems worldwide. The company has market cap of $2.29 billion. The firm operates through Network Enablement, Service Enablement, and Optical Security and Performance Products divisions. It currently has negative earnings. The Network Enablement segment offers testing solutions that access the network to perform build-out and maintenance tasks.

Viavi Solutions Inc. (NASDAQ:VIAV) Ratings Chart

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