Ericsson ( ERIC Quick Quote ERIC - Free Report) recently announced plans to invest millions of pounds in research capabilities in 6G network connectivity in the United Kingdom. The initiative is likely to sow the seeds for in-depth research activities on hardware security, AI, cognitive networks and quantum computing through collaborations with leading universities in the region. Ericsson aims to embark on this 10-year initiative by setting up a team of 20 experienced domain experts in the country along with some dedicated and talented students sponsored by it. The company aims to focus on developing next-generation 6G networks, which are expected to be commercially available in 2030. Investments in research and development have established it as a leader in 5G. The company continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. Ericsson is well-positioned to cash in on the market momentum with its competitive 5G product portfolio. Ericsson Radio System comprises hardware, software and services for radio, RAN Compute, antenna system, transport, power and site solutions. It enables smooth and cost-effective migration from 4G to 5G, aiding communication service providers to launch the avant-garde technology and grow 5G coverage fast. The company’s 5G radio access technologies provide the infrastructure required to meet the growing demand for high-bandwidth connections and support real-time, high-reliability communication requirements of mission-critical applications. The company is focusing on 5G system development. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence. Ericsson currently has 134 live 5G networks across the globe spanning 56 countries. With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity. It is the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide. The stock has lost 41.2% over the past year compared with the industry’s decline of 25%. Image Source: Zacks Investment Research
Ericsson currently has a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here TESSCO Technologies Incorporated , sporting a Zacks Rank #1, delivered an earnings surprise of 126.1%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 44.3% since November 2021. TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry. Harmonic Inc. ( HLIT Quick Quote HLIT - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 79.3%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 48.6% since March 2021. Harmonic provides video delivery software, products, system solutions, and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit internet service to consumers' homes and mobile devices. AudioCodes Ltd. ( AUDC Quick Quote AUDC - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the secular tailwinds related to IP-based communications. Incorporated in 1992 and headquartered in Lod, Israel, it offers advanced communications software, products and productivity solutions for the digital workplace. It has a long-term earnings growth expectation of 9%. AudioCodes It aims to leverage its long-term partnership with Microsoft to further strengthen its market position. It is also likely to benefit from its continued focus on high-margin businesses.