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NETGEAR's (NTGR) WAX204 WiFi 6 Access Point to Aid Home Offices

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NETGEAR, Inc. (NTGR - Free Report) recently announced the launch of an avant-garde wireless access point device WAX204 WiFi 6 Access Point to facilitate micro-businesses and budget-sensitive home offices with superior network performance and enhanced coverage. On the back of WiFi 6 technology, this breakthrough platform will offer improved firewall security and enable users to tide over the wireless network headwinds, such as dropped connections, erratic connectivity and complicated installation process.

Nowadays, lack of security for guest access is one of the major challenges faced by WiFi networks. The latest entrant to NETGEAR’s advanced portfolio of WiFi 6-enabled business products eliminates that particular risk as it is equipped with three separate wireless networks to secure employee, guest and admin networks. Markedly, this strategic move is likely to bolster NETGEAR’s Business Essentials line of innovative wireless access point solutions while benefitting service providers and consumers at a low budgeted environment.

It is worth mentioning that wireless networking continues to be the backbone of today’s communications technology, driven by device proliferation. Given NETGEAR’s expertise in powering enterprises with best-in-class products, the WAX204 is considered an appropriate fit to aid home workers with a streamlined network infrastructure.

The device is specifically designed for those who require a local management solution with an intuitive, web-based interface and not rely on remote management facilities. Built with latest wireless standard, the compact solution is ideal for use in retail shops and conference rooms, and provides the ideal network configuration for small and medium-sized business with utmost security and flexibility. Impressively, the new product does not involve any deployment costs, which makes it all the more worthwhile among the millennial customers.

With hassle-free configuration, this cost-effective solution is also compatible with WiFi 5 and older devices. It is fortified with five ethernet gigabit ports, which connect wired devices like gaming consoles, printers and laptops with top-notch network performance, courtesy of its dual band feature of delivering 1.8Gbps data throughput with 40% higher speeds. Apart from operating as an access point, the solution can also function as a router, which eradicates the need for a separate device, thereby reducing operational overheads. Currently, WAX204 is commercially available in the United States with a price tag of $129.99.

Holding nearly 49% market share in U.S. retail WiFi products, this San Jose, CA-based networking behemoth intends to remain quite proactive with its broad line-up of Orbi, cable modems and gateways coupled with its SMB switching portfolio, particularly the PoE and ProAV switches. The company continues to capitalize on technology inflections, create new categories and generate recurring revenues to sustain its leading market position and fuel growth. It expects to significantly benefit from new product initiations on the back of WiFi 6 standards.

NETGEAR’s top line is growing owing to the rapid surge in Internet-connected devices, thereby boosting the need for robust networking solutions. Increased market demand for Smart Home and connected products, such as Smart TVs, game consoles and security cameras among others continue to spur innovation in the networking space. It generates a significant portion of the company’s revenues from its Connected Home segment that offers high-performance, dependable and easy-to-use LTE and WiFi Internet networking solutions for consumers. Notably, this latest WiFi 6 access point is likely to consolidate its market position and augment revenues in the near term.

Shares of NETGEAR have rallied 29.8% against the industry’s decline of 8% in the past year. The company’s earnings topped estimates in each of the last four quarters, the average being 60%.

NETGEAR currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the industry are Digi International Inc. (DGII - Free Report) , Extreme Networks, Inc. (EXTR - Free Report) and RADCOM Ltd. (RDCM - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Digi International pulled off a trailing four-quarter earnings surprise of 546.9%, on average.

Extreme Networks delivered a trailing four-quarter earnings surprise of 55.4%, on average.

RADCOM delivered a trailing four-quarter earnings surprise of 63.6%, on average.

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