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COMM Stock Surges 378.2% in a Year: Is it Still Worth Buying?

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CommScope Holdings Company, Inc. (COMM - Free Report) has gained 378.2% over the past year compared with the Communication Infrastructure industry’s growth of 29.2%. The stock has also outperformed the Zacks Computer & Technology sector and the S&P 500’s growth of 7.4% and 9%, respectively.

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It has also outperformed its competitors, such as Corning Incorporated (GLW - Free Report) and Amphenol Corporation (APH - Free Report) . Corning has surged 34.4% while Amphenol has gained 27.6% in the past year.

COMM Rides on Portfolio Optimization & Product Innovation

CommScope is focused on enhancing transparency in the processes, reducing manufacturing costs, optimizing the overhead cost structure and improving working capital for enhanced profitability and cash flow. The company divested its Outdoor Wireless Networks segment and the Distributed Antenna Systems business unit in 2025. Earlier, it also divested the Home Networks business. These strategic divestitures will improve liquidity and allow CommScope to increase its focus on core products.

The company is taking initiative to better respond to evolving market dynamics. Investment in capacity expansion to match the demand for products with high backlog and efforts to expand its Enterprise business in underpenetrated metropolitan areas are driving growth. It is also steadily expanding its portfolio in several verticals such as fiber optic connectivity for fiber-to-the-x and data centers, Wi-Fi 7 and 6GHz, DOCSIS 4.0, gigabit passive optical network, and metro cell and small cell wireless solutions. The company launched a cutting-edge floor-mounted fiber frame solution, Propel XFrame, to streamline management of high-density data centers.

With a comprehensive portfolio, a worldwide salesforce, and an extensive network of channel partners, including independent distributors, system integrators and value-added resellers, enable CommScope to efficiently serve its broad customer base across 100 countries. Moreover, no customer generates more than 10% of total revenues.

COMM Plagued by Fierce Competition

The company faces stiff competition in each of its served markets. In the Access Network Solutions segment, Intensifying competition from Harmonic, ATX Networks, and Cisco is straining margins. Connectivity and Cable Solutions segment is affected by fierce rivalry with multiple players such as Corning, Amphenol, Belden and Clearfield. Corning’s innovative optical connectivity products for generative AI applications and Amphenol’s high-speed power and fiber optic interconnect solutions are gaining strong popularity. This is a major concern for CommScope.

The success of 5G technology hinges on substantial investments to upgrade infrastructure in the core fiber backhaul network to support expected growth in data services. Although these investments will eventually help minimize service delivery costs to adequately support broadband competition, rural coverage and wireless densification, short-term profitability is likely to be eroded, resulting in earnings dilution.

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Estimate Revision Trend of COMM

COMM is currently witnessing an uptrend in estimate revisions. Earnings estimates for 2025 have jumped 9.88% to 89 cents over the past 60 days, while the same for 2026 has increased 4.39% to $1.19. The positive estimate revision portrays bullish sentiments about the stock’s growth potential.

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End Note

CommScope’s comprehensive and differentiated product offerings and investment in high-growth opportunities have strengthened its position for long-term sustainable growth. Efforts to optimize its portfolio with strategic divestitures and a vast customer base are positive factors. The upward revision of estimates highlights growing investors’ confidence.

However, intensifying competition with large enterprises, such as Corning and Amphenol, is weighing on margins. Sino-U.S. trade hostilities are also a major headwind. With a Zacks Rank #3 (Hold), COMM appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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