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Here's Why Motorola (MSI) is a Promising Portfolio Pick Now
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Shares of Motorola Solutions, Inc. (MSI - Free Report) have climbed 14.6% over the past year, driven by improved market demand across its portfolio on the back of a flexible business model and solid cash flow. Earnings estimates for the current fiscal year have increased 3.2% since August 2022. With healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Growth Drivers
Based in Chicago, IL, Motorola is a leading communications equipment manufacturer and has a strong market position in bar code scanning, wireless infrastructure gear and government communications. The company generally provides services and solutions to government segments and public safety programs together with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.
As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.
It remains poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment and a favorable global macroeconomic environment. Its competitive position and an attractive portfolio for a large addressable market augur well for long-term growth.
With solid quarterly results and robust demand patterns, the company has raised its guidance for 2023. Non-GAAP earnings are currently expected in the $11.40-$11.48 per share range, up from the prior view of $11.21-$11.29 on year-over-year higher revenues of $9.875 billion to $9.9 billion, up from $9.725 billion to $9.775 billion estimated earlier, with a rise in both segments on higher demand.
It has a long-term earnings growth expectation of 9% and delivered an earnings surprise of 5.6%, on average, in the trailing four quarters.
Other Key Picks
T-Mobile US, Inc. (TMUS - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 8.8% in the last reported quarter. It has a VGM Score of B.
Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. The company offers services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 18.7% and delivered an earnings surprise of 12.8%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
AudioCodes Ltd. (AUDC - Free Report) is a Zacks Rank #2 stock. It has a long-term earnings growth expectation of 4.3% and delivered an earnings surprise of 2.2%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products, and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
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Here's Why Motorola (MSI) is a Promising Portfolio Pick Now
Shares of Motorola Solutions, Inc. (MSI - Free Report) have climbed 14.6% over the past year, driven by improved market demand across its portfolio on the back of a flexible business model and solid cash flow. Earnings estimates for the current fiscal year have increased 3.2% since August 2022. With healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Growth Drivers
Based in Chicago, IL, Motorola is a leading communications equipment manufacturer and has a strong market position in bar code scanning, wireless infrastructure gear and government communications. The company generally provides services and solutions to government segments and public safety programs together with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.
As a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation. These systems drive the demand for additional device sales and promote software upgrades and infrastructure expansion. The comprehensive suite of services ensures continuity and reduces risks related to critical communications operations.
It remains poised to benefit from organic growth and acquisition initiatives, disciplined capital deployment and a favorable global macroeconomic environment. Its competitive position and an attractive portfolio for a large addressable market augur well for long-term growth.
With solid quarterly results and robust demand patterns, the company has raised its guidance for 2023. Non-GAAP earnings are currently expected in the $11.40-$11.48 per share range, up from the prior view of $11.21-$11.29 on year-over-year higher revenues of $9.875 billion to $9.9 billion, up from $9.725 billion to $9.775 billion estimated earlier, with a rise in both segments on higher demand.
It has a long-term earnings growth expectation of 9% and delivered an earnings surprise of 5.6%, on average, in the trailing four quarters.
Other Key Picks
T-Mobile US, Inc. (TMUS - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 8.8% in the last reported quarter. It has a VGM Score of B.
Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. The company offers services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 18.7% and delivered an earnings surprise of 12.8%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
AudioCodes Ltd. (AUDC - Free Report) is a Zacks Rank #2 stock. It has a long-term earnings growth expectation of 4.3% and delivered an earnings surprise of 2.2%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products, and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.