We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CommScope (COMM) Boosts Portfolio With Strategic Buyout Deal
Read MoreHide Full Article
CommScope Holding Company, Inc. (COMM - Free Report) has significantly strengthened its portfolio by acquiring Casa Systems' Cable Business assets. Under a court-supervised Chapter 11 process, Casa Systems selected CommScope as the highest and best bidder, finalizing a $45.1 million purchase agreement on May 29, 2024. The deal, conducted under section 363 of the Bankruptcy Code, is scheduled for a sale hearing on Jun 4, with the transaction expected to close by Jun 6.
This acquisition enhances CommScope’s market-leading position in Access Network Solutions. It bolsters its virtual CMTS (Cable Modem Termination Systems) and PON (Passive Optical Network) product offerings, bringing significant synergies to the company’s operations. This move aligns with CommScope's strategy to expand its technological capabilities and customer base, especially in the domain of cloud-native network solutions.
From an industry perspective, this acquisition is pivotal as it allows CommScope to integrate Casa's advanced technologies into its own portfolio. The enhanced product offerings will enable CommScope to provide more comprehensive solutions, catering to the growing demand for high-speed, reliable network connectivity. The incorporation of Casa’s technologies is expected to facilitate a smoother transition for customers to Distributed Access Architecture solutions, a critical component in modernizing cable networks.
Moreover, the deal holds significant importance for CommScope from a business standpoint. The company views the acquisition as a means to ensure stability for Casa’s existing customers while simultaneously expanding its market reach. By offering a seamless integration of CMTS products, CommScope aims to enhance customer satisfaction and loyalty. The expected synergies and expanded product offerings underscore the strategic value of this transaction, marking a significant milestone in CommScope's ongoing growth and innovation journey.
With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, CommScope is dedicatedly developing solutions designed to support wireline and wireless network convergence, which will be essential for the success of 5G technology. Its product portfolio has been specifically designed to help global service providers efficiently deploy fiber networks. This augurs well for its long-term growth prospects. The company also continues to be one of the leading suppliers of intelligent antenna platforms for FirstNet deployments.
The stock has lost 65.4% in the past year compared with the industry’s decline of 43.8%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CommScope currently carries a Zacks Rank #3 (Hold).
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, 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 15.7% and delivered an earnings surprise of 15.4%, 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.
NVIDIA Corporation (NVDA - Free Report) , sporting a Zacks Rank #1, is another key pick in the broader industry. It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, the company’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
The company’s GPU platforms are playing a major role in developing multi-billion-dollar end-markets like robotics and self-driving vehicles. NVIDIA has a long-term earnings growth expectation of 30.9% and delivered an earnings surprise of 18.4%, on average, in the trailing four quarters.
Motorola Solutions, Inc. (MSI - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 7.5%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 9.5%.
Motorola provides services and solutions to government segments and public safety programs, along 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CommScope (COMM) Boosts Portfolio With Strategic Buyout Deal
CommScope Holding Company, Inc. (COMM - Free Report) has significantly strengthened its portfolio by acquiring Casa Systems' Cable Business assets. Under a court-supervised Chapter 11 process, Casa Systems selected CommScope as the highest and best bidder, finalizing a $45.1 million purchase agreement on May 29, 2024. The deal, conducted under section 363 of the Bankruptcy Code, is scheduled for a sale hearing on Jun 4, with the transaction expected to close by Jun 6.
This acquisition enhances CommScope’s market-leading position in Access Network Solutions. It bolsters its virtual CMTS (Cable Modem Termination Systems) and PON (Passive Optical Network) product offerings, bringing significant synergies to the company’s operations. This move aligns with CommScope's strategy to expand its technological capabilities and customer base, especially in the domain of cloud-native network solutions.
From an industry perspective, this acquisition is pivotal as it allows CommScope to integrate Casa's advanced technologies into its own portfolio. The enhanced product offerings will enable CommScope to provide more comprehensive solutions, catering to the growing demand for high-speed, reliable network connectivity. The incorporation of Casa’s technologies is expected to facilitate a smoother transition for customers to Distributed Access Architecture solutions, a critical component in modernizing cable networks.
Moreover, the deal holds significant importance for CommScope from a business standpoint. The company views the acquisition as a means to ensure stability for Casa’s existing customers while simultaneously expanding its market reach. By offering a seamless integration of CMTS products, CommScope aims to enhance customer satisfaction and loyalty. The expected synergies and expanded product offerings underscore the strategic value of this transaction, marking a significant milestone in CommScope's ongoing growth and innovation journey.
With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, CommScope is dedicatedly developing solutions designed to support wireline and wireless network convergence, which will be essential for the success of 5G technology. Its product portfolio has been specifically designed to help global service providers efficiently deploy fiber networks. This augurs well for its long-term growth prospects. The company also continues to be one of the leading suppliers of intelligent antenna platforms for FirstNet deployments.
The stock has lost 65.4% in the past year compared with the industry’s decline of 43.8%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CommScope currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, 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 15.7% and delivered an earnings surprise of 15.4%, 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.
NVIDIA Corporation (NVDA - Free Report) , sporting a Zacks Rank #1, is another key pick in the broader industry. It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, the company’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
The company’s GPU platforms are playing a major role in developing multi-billion-dollar end-markets like robotics and self-driving vehicles. NVIDIA has a long-term earnings growth expectation of 30.9% and delivered an earnings surprise of 18.4%, on average, in the trailing four quarters.
Motorola Solutions, Inc. (MSI - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 7.5%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 9.5%.
Motorola provides services and solutions to government segments and public safety programs, along 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.