Nokia Corporation ( NOK Quick Quote NOK - Free Report) recently joined forces with Export Development Canada (“EDC”) to tap into probable investment opportunities across the globe for 5G deployment and network infrastructure upgrade. The three-year deal with the state-owned enterprise will seek to put various Canada-based firms on the global map as well as help Nokia gain more businesses with a plethora of finance and insurance solutions. Per the Global Corporate Partnership program with EDC, the Nordic telecommunications equipment manufacturer will gain added financial resources to sustain and develop its R&D facility in Ottawa, Canada, while strengthening its regional footprint. This R&D facility is reportedly one of Nokia’s largest worldwide and employs more than 2,300 people in high-tech jobs and 400 students under its university co-op program. EDC is also likely to provide adequate support for seamless trade services with various trade groups to further develop the ecosystem of local suppliers and solution partners in order to bring more firms under the supply chain mechanism of a leading company like Nokia. This, in turn, is likely to have a positive impact on employment, investment, and overall value creation as the North American country aims to emerge stronger in the post-pandemic revival. With support from EDC, Nokia will seek to augment its export basket with a bevy of products manufactured in the Ottawa facility that are incorporated in solutions for 5G, network security, fiber optic systems, and broadband access networks. This will enable the company to better respond to international business opportunities and boost its revenues. The company currently has 166 commercial 5G deals with communications service providers. It has more than 230 5G engagements with operators, from deals to paid trials. It has 66 live 5G networks, both public and private. The company has presence in all 5G early adopter markets. Nokia is well positioned to benefit from the increasing demand for next-generation connectivity. The company is on track to achieve sustainable, profitable growth and technology leadership. Nokia aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments. It has been developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. Its installed base of high-capacity AirScale product, which enables customers to quickly upgrade to 5G, is growing fast. The company is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, Nokia is transforming the way people and things communicate and connect with each other. These include seamless transition to 5G technology, broadband access, IP and Software Defined Networking, cloud applications and Internet of Things. To strengthen its leading position in the market, Nokia facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency. The company intends to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets. The stock has gained 34.5% in the past year compared with the industry’s rally of 41.4%. Image Source: Zacks Investment Research
We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry are
Clearfield, Inc. ( CLFD Quick Quote CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and TESSCO Technologies Incorporated ( TESS Quick Quote TESS - Free Report) and SeaChange International, Inc. ( SEAC Quick Quote SEAC - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Clearfield delivered an earnings surprise of 49%, on average, in the trailing four quarters. TESSCO delivered an earnings surprise of 2.5%, on average, in the trailing four quarters. SeaChange International has a long-term earnings growth expectation of 10%. It delivered an earnings surprise of 12.2%, on average, in the trailing four quarters.