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AT&T (T), Northrop Grumman to Deliver 5G Defense Capabilities

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AT&T Inc. (T - Free Report) has collaborated with Northrop Grumman (NOC - Free Report) to research and develop a digital battle network, powered by the former’s 5G and the latter’s mission systems, to support the U.S. Department of Defense (“DoD”).  

The industry leaders plan to deliver an open-architecture solution to help the DoD connect sensors and data from all domains.

The digital battle network is likely to bring together the high speed, low latency and cybersecurity protection of private 5G networks along with the flexibility of AT&T’s commercial 5G capabilities.

This will offer a critical capability to support the DoD’s vision for Joint All Domain Command and Control (JADC2).

JADC2 is the DoD’s concept to connect sensors from all military services — Air Force, Army, Marine Corps, Navy and Space Force — into a single network.

The collaboration brings together some of the best capabilities in defense and commercial communications to meet the evolving requirements of JADC2.

The enhanced connectivity and networking of information that 5G provides are a great advantage in a military environment. It will help the DoD develop high-performing and intuitive technologies that seamlessly share data across secure networks.

AT&T’s 5G capabilities are likely to help the DoD achieve operational and information advantage.

By combining its 5G services with Northrop Grumman’s avionics and defense systems, the companies aim to create an ideal platform to deliver the DoD’s JADC2 vision.

The deal includes a joint research and development framework to prototype, demonstrate and test AT&T’s commercial 5G networking capabilities integrated with Northrop Grumman’s portfolio of capabilities.

AT&T continues to invest in key areas of business and adapt to the evolving market scenario for long-term sustainable growth.

The stock has lost 22.7% in the past year compared with the industry’s decline of 11.5%.

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The company is likely to benefit from investments to deliver 5G capabilities for new use cases to its expanding customer base.

T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearfield, Inc. (CLFD - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 20.5% over the past 60 days.

Clearfield delivered a trailing four-quarter earnings surprise of 50.7%, on average. It has soared 118.6% in the past year.

Qualcomm, Inc. (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 12.2% over the past 60 days.

Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has inched up 4.3% in the past year.

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