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Unisys (UIS) Remains Focused on Healthy Organic Growth
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On Dec 12, Zacks Investment Research updated the research report on information technology firm Unisys Corporation (UIS - Free Report) .
Based in Blue Bell, PA, Unisys is an IT firm, specializing in securing client operations, increasing efficiency of data centers, enhancing support to their end users and constituents and modernizing their enterprise applications.
Unisys remarkably outperformed the Zacks categorized Information Technology Service industry, with an average return of 69.5% in the last 90 days compared with 3.3% for the latter. The earnings estimates of the company for the current year have increased from $1.84 in the last 90 days to $1.88 per share.
The information technology industry is presently in a transition phase, forging new disruptive trends in cloud mobility, Big Data, social computing and increasing awareness of cyber security. In order to capitalize on these trends, Unisys is rationalizing its services and solution portfolio by shifting its offerings to cloud-based and software-as-a-service delivery models. The company is concentrating on business opportunities in fewer, more profitable sectors in the IT marketplace.
Unisys has been restructuring its business to improve profitability. This restructuring strategy includes selling non-core businesses and revamping its sales strategy, while also investing in a few higher-growth areas such as outsourcing. We expect the company to continue with its cost-control initiatives and put greater effort toward sales growth, as it strives to overcome its operational weaknesses. Unisys is focusing more on building specialized industry skills and resources required to win industry-specific project opportunities. The company is investing heavily on developing a team dedicated to pursuing growth opportunities for application-managed services both for existing and new clients.
Unisys recently expanded its ClearPath Forward Dorado systems, with the release of its latest ClearPath OS 2200 operating-environment software. With the evolution of technology, it has become a huge task for diverse companies to keep pace with the growing needs of their customers. Clients also have an unwavering commitment to OS 2200. The OS 2200 version 17.0 is a result of Unisys' commitment toward its clients. It provides better security, openness, mobility, scalability and flexibility to set itself apart from its peers.
However, the company faces stiff competition in the information services and technology marketplace from consulting and other professional services firms, systems integrators, outsourcing providers, infrastructure services providers, computer hardware manufacturers and software providers. Consequently, Unisys has to continually invest in new technologies which act as value drivers that could provide a hedge against stiff competition. However, these incremental investments increase operating expenses, thus squeezing margins and negatively impacting profitability.
Unisys currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the IT services industry include Barracuda Networks, Inc. , Science Applications International Corporation (SAIC - Free Report) and CDK Global, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barracuda Networks has a strong long-term earnings growth expectation of 21.1%. In addition, the stock has a stellar earnings history, beating earnings estimates in each of the trailing four quarters.
Science Applications International Corporation is another strong performer in the industry with a solid earnings history, beating earnings estimates in each of the trailing four quarters.
CDK Global has a long-term earnings growth expectation of 12.5%. The stock also has a healthy positive earnings history, beating estimates in three of the trailing four quarters.
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Unisys (UIS) Remains Focused on Healthy Organic Growth
On Dec 12, Zacks Investment Research updated the research report on information technology firm Unisys Corporation (UIS - Free Report) .
Based in Blue Bell, PA, Unisys is an IT firm, specializing in securing client operations, increasing efficiency of data centers, enhancing support to their end users and constituents and modernizing their enterprise applications.
Unisys remarkably outperformed the Zacks categorized Information Technology Service industry, with an average return of 69.5% in the last 90 days compared with 3.3% for the latter. The earnings estimates of the company for the current year have increased from $1.84 in the last 90 days to $1.88 per share.
The information technology industry is presently in a transition phase, forging new disruptive trends in cloud mobility, Big Data, social computing and increasing awareness of cyber security. In order to capitalize on these trends, Unisys is rationalizing its services and solution portfolio by shifting its offerings to cloud-based and software-as-a-service delivery models. The company is concentrating on business opportunities in fewer, more profitable sectors in the IT marketplace.
Unisys has been restructuring its business to improve profitability. This restructuring strategy includes selling non-core businesses and revamping its sales strategy, while also investing in a few higher-growth areas such as outsourcing. We expect the company to continue with its cost-control initiatives and put greater effort toward sales growth, as it strives to overcome its operational weaknesses. Unisys is focusing more on building specialized industry skills and resources required to win industry-specific project opportunities. The company is investing heavily on developing a team dedicated to pursuing growth opportunities for application-managed services both for existing and new clients.
Unisys recently expanded its ClearPath Forward Dorado systems, with the release of its latest ClearPath OS 2200 operating-environment software. With the evolution of technology, it has become a huge task for diverse companies to keep pace with the growing needs of their customers. Clients also have an unwavering commitment to OS 2200. The OS 2200 version 17.0 is a result of Unisys' commitment toward its clients. It provides better security, openness, mobility, scalability and flexibility to set itself apart from its peers.
However, the company faces stiff competition in the information services and technology marketplace from consulting and other professional services firms, systems integrators, outsourcing providers, infrastructure services providers, computer hardware manufacturers and software providers. Consequently, Unisys has to continually invest in new technologies which act as value drivers that could provide a hedge against stiff competition. However, these incremental investments increase operating expenses, thus squeezing margins and negatively impacting profitability.
Unisys currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the IT services industry include Barracuda Networks, Inc. , Science Applications International Corporation (SAIC - Free Report) and CDK Global, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barracuda Networks has a strong long-term earnings growth expectation of 21.1%. In addition, the stock has a stellar earnings history, beating earnings estimates in each of the trailing four quarters.
Science Applications International Corporation is another strong performer in the industry with a solid earnings history, beating earnings estimates in each of the trailing four quarters.
CDK Global has a long-term earnings growth expectation of 12.5%. The stock also has a healthy positive earnings history, beating estimates in three of the trailing four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>