Ceragon Networks Ltd. (CRNT) had a rough 2025, tumbling by more than half. But the stock also had an incredible 2024, rising over 116%. All in all, Ceragon looks primed for long-term growth...and is supported by strong macro drivers and an attractive valuation. That makes it my top growth pick for 2026, writes Philip MacKeller, editor of Contra the Heard.
Ceragon is a small-cap play on 5G and other communication technologies, providing wireless products and services that support wireless and cellular service providers. Headquartered in Israel and listed in the US, the company does business globally. Last quarter, India accounted for 29% of sales while North America made up 31% of revenue. The remainder was split between Latin America, Europe, Asia-Pacific, and Africa.
The enterprise is well positioned to benefit from strong underlying trends. According to Ericsson’s latest Mobility Report, India’s 5G adoption rate is currently around 32%, but should increase to 79% by 2031. North America, already a global leader, should see an expansion from 79% to 92%.
Not only is 5G usage growing, but companies, governments, and large users are building out their own private networks, adding to demand for Ceragon’s products and services. CRNT stands to benefit from geopolitical and trade tensions with Huawei and China as well.
In addition to these macro drivers, the corporation is healthy. The balance sheet is clean, customer concentrations are low, and insiders own around 10% of shares, aligning them with the interests of other owners. Best of all, the company is cheap. Many valuation measures are well off their five-year averages, and on certain metrics, CRNT is trading at cycle lows.
Ceragon’s weak share price performance comes down to India, where many projects have been delayed. A large customer has also faced financial difficulty. Though purchasing activity among Indian carriers improved in the latest quarter, this remains a risk heading into 2026.
Other concerns include shareholder dilution, stiff competition, and a patchy earnings history. M&A integration or overpaying are risks as well. The recent purchases of Siklu and E2E Technologies have gone smoothly, but Ceragon could bite off more than they can chew in the future. It is also a small cap stock based in Israel.
That said, I still like the name for 2026.
Recommended Action: Buy CRNT.
