Is Viavi Solutions (VIAV) an Underappreciated Stock?

In its fourth-quarter 2025 capitalist letter, Madison Small Cap Fund highlighted stocks similar Viavi Solutions Inc. (NASDAQ:VIAV). Viavi Solutions Inc. (NASDAQ:VIAV) is simply a starring supplier of web test, monitoring, and assurance solutions for telecommunications, cloud, enterprises, archetypal responders, military, aerospace, and captious infrastructures. On March 12, 2026, Viavi Solutions Inc. (NASDAQ:VIAV) banal closed astatine $29.76 per share. One-month instrumentality of Viavi Solutions Inc. (NASDAQ:VIAV) was 13.20%, and its shares gained 172.03% implicit the past 52 weeks. Viavi Solutions Inc. (NASDAQ:VIAV) has a marketplace capitalization of $6.89 billion.

Madison Small Cap Fund stated the pursuing regarding Viavi Solutions Inc. (NASDAQ:VIAV) successful its 4th fourth 2025 capitalist letter:

"Small headdress initiated a caller concern successful the trial and measurement institution Viavi Solutions Inc. (NASDAQ:VIAV). Viavi’s trial and measurement solutions supply web test, monitoring, and assurance solutions for telecommunications, cloud, enterprise, aerospace, defense, and concern markets. The institution operates done 2 superior segments: Network and Service Enablement (NSE): Offers trial and measurement instruments, software, and services for wireless, wireline, cloud, information center, and subject markets. Optical Security and Performance Products (OSP): Provides optical coatings and components utilized successful anticounterfeiting, 3D sensing, automotive, and concern applications. Test and measurement is simply a precise sticky concern with important moats, making strategical mergers and acquisitions an important operator of maturation and moat expansion. In aboriginal 2024, Viavi Solutions made an archetypal $1.3 cardinal bid to get Spirent Communications, a UK-based supplier of web investigating and assurance solutions. Shortly after, Keysight Technologies countered with a higher bid of $1.46 billion, which Spirent accepted. The U.S. Department of Justice (DOJ) raised antitrust concerns, noting that Keysight and Spirent unneurotic controlled 85% of the high-speed Ethernet investigating market, 60% of the web information investigating market, and 50% of the vigor frequence transmission emulation market. To resoluteness these concerns, the DOJ required Keysight to divest its overlapping concern units to Viavi nether a consent decree. This woody closed connected October 16, and we judge the Spirent assets volition fortify Viavi’s presumption successful the information halfway ecosystem and accelerate maturation and borderline expansion. We judge the marketplace does not yet afloat admit Viavi’s immense accidental successful the information halfway market. We estimation the stock’s intrinsic worth to beryllium $30."