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CenturyLink Partners With Palo Alto, Boosts Network Security

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CenturyLink, Inc. recently announced the integration of a managed version of Palo Alto Networks, Inc.’s (PANW - Free Report) next-generation firewalls with its Security Log Monitoring service. The managed firewall will offer businesses enhanced capabilities of threat intelligence and network visibility.

CenturyLink's Security Log Monitoring platform is capable of managing and monitoring various Palo Alto Networks’ next-generation firewalls. On the other hand, the managed Palo Alto Firewall supports advanced features like URL filtering, anti-virus, site-to-site and client VPNs, apart from content, application and user identification. With the integration, customers will have the choice to select the best monitoring options, per their business requirements, either managed by in-house resources or CenturyLink. 

As a matter of fact, Palo Alto Networks’ advanced firewalls coupled with CenturyLink's threat intelligence and threat detection capabilities will enable businesses to meet their growing network security concerns in rapid threat changing environments.

Our Take

CenturyLink’s focus on transforming its business operations through product evolution and digitizing of customer interaction bodes well for future revenue growth. Recently, the company introduced Dynamic Connections as part of its Cloud Connect portfolio and announced the global expansion of its SD-WAN solutions, while extending its platform to cloud service and software-as-a-service providers. Also, it is working with customers to enable their 5G roadmaps while extending itsfiberfootprint.

Moreover, the company is investing infiber-to-the-tower expansion and has extended itsfiber-based backhaul services. CenturyLinkexpects its Managed Office and Managed Enterprise Solutions to continue gaining traction and drive revenue growth on the back of increasing demands from small and large business customers. The company’s broadband expansion goal will help it benefit from the growing demand.

In the past year, this Zacks Rank #3 (Hold) company has lost 4.8% compared with the industry’s decline of 8.2%.

However, CenturyLink’s core local phone business has slowed significantly due to the substitution of traditional wireline telephone services by wireless and other competitive offerings and lower long distance minutes of use.

Stocks to Consider

A couple of better-ranked stocks from the same space are ATN International, Inc. (ATNI - Free Report) and United States Cellular Corporation (USM - Free Report) . While ATN International sports a Zacks Rank #1 (Strong Buy), United States Cellular carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ATN International surpassed estimates thrice in the trailing four quarters, the average beat being 138.12%.

United States Cellular outpaced estimates in each of the preceding four quarters, the average beat being 108.11%.

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