Back to top

Analyst Blog

Zacks Equity Research

Windstream Adds Another Data Center

WIN FTR

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

In an attempt to expand its line-up of data centers, U.S. telecom company Windstream Corporation (WIN - Analyst Report) will set up a new data center at the Franklin, Tennessee campus just outside Nashville.

The 21,000 square feet stand-alone data center will be at 311 Eddy Lane and is scheduled to open in 2013. The center – which serves as the technological base for the company’s Internet, cloud and managed IT services to businesses and customers – will be built with superior specifications and infrastructure.

The facility is being constructed to cope with the growing demand for data center and managed services from customers all over the nation. The unit will also lend support to Windstream Hosted Solutions to manage its huge network of cloud computing solution. This technology aids in improving the efficiency level and accessibility of IT resources and its applications in firms.

Windstream – which currently has 19 data centers across the U.S. – is putting in a lot of capital for the development of data center business.  

Headquartered in Little Rock, Arkansas, Windstream operates in rural communities in the southern and southwestern parts of the U.S. The company together with its various subsidiaries provides local and long distance phone service and high-speed Internet services to residential and business customers.  

We maintain our long-term Neutral recommendation on Windstream, supported by a Zacks #3 Rank (short-term Hold rating).

We expect Windstream’s strong operational performance to drive growth in business and consumer channels while enhancing its cost structure. In addition, Windstream’s several refinancing and deleveraging efforts will likely alleviate high debt levels. Other positives include growing demand for high-speed internet services, expansion of business via acquisition, increasing data center co-locations and investment in fiber-to-the-cell projects.

However, we remain on the sidelines due to competitive pressures from peers like Frontier Communications (FTR - Analyst Report), a highly leveraged balance sheet as well as continued access-line erosion and diminishing whole sale business.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.55 +5.28%
RAMBUS INC RMBS 12.39 +5.09%
NETFLIX INC NFLX 346.06 +4.42%
E COMMERCE C DANG 12.61 +4.39%