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Undervalued Finisar Fights to Stay Tops in Optics

We see two tangible growth drivers: high-speed optics for datacom and 3-D sensing lasers in smartphones.

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 Finisar (FNSR) is the largest fiber optics manufacturer by revenue, according to research and consulting firm Ovum, and boasts one of the broadest optical product portfolios that support fiber-based communication systems.

It is well positioned to benefit from ongoing robust demand for high-speed fiber optics. However, we do not believe Finisar has an economic moat in this highly fragmented and cyclical industry as a result of product commoditization and strong buying power from customers.

Alex Zhao does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.