Applied Optoelectronics (NASDAQ: AAOI) stock jumped double digits in early trading on the Nasdaq Stock Market Tuesday, before retracing to about a 7.4% gain through 12:12 p.m. ET.

If you own shares of the fiber optics networking equipment maker, you can thank Rosenblatt Securities for the gains. This morning, Rosenblatt upgraded Applied Opto stock to "buy."

With a history of losing money in its telecom equipment business, a negative trailing P/E ratio, and a forward P/E ratio (based on predictions of profits over the coming year) at a nosebleed level of 84 times earnings, Applied Optoelectronics may not be most investors' first choice in seeking a value stock. But just wait, says Rosenblatt. This time is different!

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Source Fool.com