JDS Uniphase Shares Surged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: JDS Uniphase (NAS: JDSU) popped 9% higher on Tuesday, after running up nearly 11% at one point.

So what: What's the reason behind the price spike? Take your pick. Telecom equipment peer Ciena (NAS: CIEN) is set to report earnings Thursday. Good news there would presumably spill over to JDS' benefit. Also, RBC Capital upped its price target on the stock to $18 today. Furthermore, JDS announced today that it will be presenting at two separate investor conferences next month.

Now what: Any one of those factors could have caused a price spike at JDS. Put 'em all together in one place and they apparently cause a 9% price spike. As for what will keep the shares climbing higher, though ... I don't know. JDS already look priced for perfection at better than 43 times trailing earnings. That's a pretty penny to pay for the 14% long-term growth rate most analysts expect out of JDS. If you ask me, today's surging share price might best be used as an opportunity to exit the shares on a high note.

Will JDS reward investors who stay the course?Add it to your Watchlistand find out.

At the time this article was published Fool contributorRich Smithdoes not own (or short) any company named above. The Motley Fool has adisclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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