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Here's Why Investing in Motorola Solutions (MSI) Makes Sense

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Motorola Solutions, Inc. (MSI - Free Report) has impressed investors with its recent earnings streak, having surpassed estimates in each of the four trailing quarters. Also, the company’s leading position as a communications equipment manufacturer bodes well for future growth.

The company’s share price increase reflects its impressive performance, exhibiting investor optimism over the stock. In the past year, the company has gained 23.9% against the industry’s decline of 2.6%. We believe Motorola, which enjoys a strong foothold across markets, has several growth drivers working in its favor. Read on to find out the key catalysts at the moment.

Factors to Consider

Motorola remains poised to gain from robust organic growth, disciplined capital deployment and a favorable global macroeconomic environment. The company expects to see strong demand across land mobile radio products, services and software while the Avigilon acquisition is likely to continue outperforming expectations.

As the leading provider of mission-critical communication products and services for government and commercial customers alike, Motorola has ensured a steady revenue stream from this niche market. In an effort to further expand its public safety measures, the company has also launched new broadband service, high power mobile radio and mobile app solutions, dedicated to public security. Moreover, its competitive position along with attractive portfolio for large addressable markets and healthy balance sheet augur well for future growth.

Owing to solid quarterly revenues and earnings growth, management has raised guidance for 2018. Full-year non-GAAP earnings are currently anticipated to lie within the $7-$7.05 per share range on revenue growth of approximately14.5%, up from the previous guidance of $6.79-$6.89. The guidance reflects an expectation of minimal impacts from tariffs, given the company’s very limited exposure to China.

Zacks Rank & Other Key Picks

The stock currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks from the same industry are QUALCOMM Incorporated (QCOM - Free Report) , Ubiquiti Networks, Inc. and Harris Corporation . While QUALCOMM and Ubiquiti Networks sport a Zacks Rank #1 (Strong Buy), Harris carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

QUALCOMM surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 18.47%.

Ubiquiti Networks surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 11.30%.

Harris outpaced estimates in each of the preceding four quarters, the average earnings surprise being 7.06%.

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