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.
Ericsson Boosts Digital Infrastructure in Africa: Stock to Gain?
Read MoreHide Full Article
Ericsson (ERIC - Free Report) recently announced that it has entered into an agreement with Econet Wireless Zimbabwe to expand the latter’s telecommunications infrastructure by boosting network scalability, reliability and unlock advanced capabilities such as automation and virtualization. Ericsson and Econet has a long-standing business relationship spanning decades. In 2023, Econet utilized Ericsson’s cloud-native dual-mode 5G Core solution to upgrade its core network and accelerate 4G and 5G installation.
In the current venture with Ericsson, Econet is integrating 5G Core cloud-native network functions to launch 5G standalone across its network. This will empower Econet to augment its mobile broadband capabilities, match the rising demand for data traffic and support advanced use cases from both individual and enterprise customers. Ericsson will offer Econet lifecycle management for its current and new Virtual Network Function and Cloud Network Function nodes. The advanced infrastructure will deliver greater cost and power efficiency and effectively facilitate Econet’s Network Function Virtualization and Ericsson Cloud Native Infrastructure Solution for rising workloads. ERIC will also provide a Cloud Core Exposure Server to enable Econet to give developers secure access to the latest core network functionalities. These features from Ericsson’s solution will significantly bolster Econet’s network capabilities.
Recently, Ericsson also collaborated with UNITEL, a prominent communication company in Angola, which has leveraged Ericsson’s comprehensive solution suite to complete its network modernization initiatives. In this venture, Ericsson has installed its dual-mode 5G Core solutions to support the migration from 2G and 3G services to 4G and 5G services. ERIC also deployed IP Multimedia Subsystem to deliver real-time communication for both business and individual users.
Will This Venture Drive ERIC’s Share Performance?
The availability of consistent network connectivity allows people to seamlessly access education, healthcare, financial and several other critical services. Lack of network access can undermine socio-economic growth and development. To address these issues and foster digital inclusivity, several government and telecom operators are undertaking various initiatives to expand their network capacity and coverage. Ericsson, with its comprehensive network portfolio, is well-positioned to capitalize on this trend. This bodes well for long-term growth.
Ericsson is witnessing headwinds in the Africa region for the last few quarters due to macroeconomic challenges, forex volatility, intense price competition and lower customer spending. The recent customer wins will likely strengthen its foothold in the region.
ERIC’s Stock Price Movement
Shares of Ericsson have gained 55.5% over the past year compared with the industry's growth of 47.2%.
Image Source: Zacks Investment Research
ERIC’s Zacks Rank and Key Picks
Ericsson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 (Buy) at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
United States Cellular Corporation (USM - Free Report) sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Ericsson Boosts Digital Infrastructure in Africa: Stock to Gain?
Ericsson (ERIC - Free Report) recently announced that it has entered into an agreement with Econet Wireless Zimbabwe to expand the latter’s telecommunications infrastructure by boosting network scalability, reliability and unlock advanced capabilities such as automation and virtualization. Ericsson and Econet has a long-standing business relationship spanning decades. In 2023, Econet utilized Ericsson’s cloud-native dual-mode 5G Core solution to upgrade its core network and accelerate 4G and 5G installation.
In the current venture with Ericsson, Econet is integrating 5G Core cloud-native network functions to launch 5G standalone across its network. This will empower Econet to augment its mobile broadband capabilities, match the rising demand for data traffic and support advanced use cases from both individual and enterprise customers. Ericsson will offer Econet lifecycle management for its current and new Virtual Network Function and Cloud Network Function nodes. The advanced infrastructure will deliver greater cost and power efficiency and effectively facilitate Econet’s Network Function Virtualization and Ericsson Cloud Native Infrastructure Solution for rising workloads. ERIC will also provide a Cloud Core Exposure Server to enable Econet to give developers secure access to the latest core network functionalities. These features from Ericsson’s solution will significantly bolster Econet’s network capabilities.
Recently, Ericsson also collaborated with UNITEL, a prominent communication company in Angola, which has leveraged Ericsson’s comprehensive solution suite to complete its network modernization initiatives. In this venture, Ericsson has installed its dual-mode 5G Core solutions to support the migration from 2G and 3G services to 4G and 5G services. ERIC also deployed IP Multimedia Subsystem to deliver real-time communication for both business and individual users.
Will This Venture Drive ERIC’s Share Performance?
The availability of consistent network connectivity allows people to seamlessly access education, healthcare, financial and several other critical services. Lack of network access can undermine socio-economic growth and development. To address these issues and foster digital inclusivity, several government and telecom operators are undertaking various initiatives to expand their network capacity and coverage. Ericsson, with its comprehensive network portfolio, is well-positioned to capitalize on this trend. This bodes well for long-term growth.
Ericsson is witnessing headwinds in the Africa region for the last few quarters due to macroeconomic challenges, forex volatility, intense price competition and lower customer spending. The recent customer wins will likely strengthen its foothold in the region.
ERIC’s Stock Price Movement
Shares of Ericsson have gained 55.5% over the past year compared with the industry's growth of 47.2%.
Image Source: Zacks Investment Research
ERIC’s Zacks Rank and Key Picks
Ericsson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
InterDigital (IDCC - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 (Buy) at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
United States Cellular Corporation (USM - Free Report) sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.