This AI Stock Roars To Profit, Builds Bullish Base Ahead Of This Key Catalyst

Legendary investor Peter Lynch often mused that turnaround plays could net the biggest gains. AI stock Vistance Networks (VISN) is one, and it’s built a bullish base as it swings to profitability.

The Claremont, North Carolina, company is an artificial intelligence play that designs and develops computer networking and connectivity solutions. Its Ruckus One platform is a cloud-based platform that simplifies the management of converged wired, wireless, and Internet of Things networks.

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AI is used during incidents to help classify their severity, trace the root causes of issues and to provide automated remediation recommendations. It simplifies more traditional, manpower-heavy approaches to network management.

The company completed a key strategic shift in January, selling its lower-margin legacy Connectivity and Cable Solutions business to Amphenol (APH) for $10.5 billion. This cleared its debt so it can focus entirely on high-margin AI networking and broadband access businesses. It also dropped its old CommScope moniker and became Vistance Networks.

AI Stock Vistance: Top Composite Rating

The stock is strong both technically and fundamentally, with its IBD Composite Rating coming in at 92 out of 99. It currently sits in fourth place in IBD’s highly-ranked Telecom–Infrastructure industry group.

Price gains have been impressive, with Vistance Networks ranking among the top 3% of equities tracked in terms of technical strength over the past 12 months.

Fundamental performance is respectable, with its Earnings Per Share Rating sitting at 80 out of 99. The firm has swung from losses to gains in three of the past four quarters. In Q3, the company reversed a year-ago loss with profit of 62 cents a share. In Q2, EPS soared 1,367% to 44 cents a share.

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Wall Street sees the firm swinging from a loss of 12 cents per share in 2024 to EPS of $1.65 when it reports full-year 2025 results. Earnings are then expected to decline 28% in 2026, MarketSurge data shows.

The firm’s Q4 report looms, with results due before the open Feb. 26. An approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around earnings. It’s a way to capitalize on the upside potential of a stock’s move around earnings, while reducing the downside risk.

Vistance Networks Stock Analysis

The AI stock is in a 10-week consolidation with an ideal buy point of 20.55, MarketSurge analysis shows. However, an earlier entry of 19.95 is also in play.

The stock has been holding support at its 50-day moving average as it consolidates gains.

In addition, the pattern qualifies as first stage. This is a plus, with IBD research finding that earlier-stages consolidations have a higher likelihood of success.

The stock’s relative strength line has been moving sideways, but it’s still holding near highs, reflecting the stock’s strength. So far in 2026, the stock has risen more than 5%, which is much better than the benchmark S&P 500’s year-to-date gain of 0.4% through Thursday.

Institutions have been adding to their holdings recently, which is reflected in its Accumulation/Distribution Rating standing at B. At the moment, 59% of shares are held by funds, MarketSurge data shows.

The company also boasts six consecutive quarters of rising fund ownership.

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Analyst See ‘Sizable Upside’ For AI Stock

Experts are currently cautious on the equity. Vistance Networks stock holds a consensus rating of hold with an average price target of 24, according to TipRanks.

But while JPMorgan Chase analyst Samik Chatterjee has a neutral rating on the stock with a 24 target, he believes its “inexpensive valuation presents sizable upside.”

“Our analysis of its broadband equipment capabilities, now referred to as Aurora Networks, and its wireless access equipment capabilities, Ruckus, suggest that there is sizable upside to the shares from current levels,” he said in a Feb. 18 note to clients.

He noted there is also a special dividend payout due in the near-term “which we estimate to be $11.50 per share.”

However, Chatterjee says he’s holding a neutral rating as he looks to “fully understand the execution around memory costs and constraints as well as reinvestment priorities following an extended period of focus on debt reduction.”

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

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