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Unisys (UIS) Launches Cargo Logistics Solution Digistics

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Information technology firm, Unisys Corporation (UIS - Free Report) recently launched an integrated cargo logistics solution to facilitate seamless freight management and higher operational efficiencies for air carriers and their current and prospective freight forwarder clients. With such state-of-the-art products, the company aims to improve its sagging revenues that have lately been hit hard by macroeconomic woes.

The holistic solution, named Digistics, will offer a comprehensive set of cargo services to air carriers, including inventory management, booking, invoicing, and accounting. Featuring modern cloud-based architecture, the system integrates Unisys’ logistics management system, cargo revenue accounting and cargo portal services under a single platform. In addition, value-added services such as mobility, RFID (radio-frequency identification) and analytics are offered to allow carriers to view past, present and forecast data for enhanced operations.

These features will provide higher visibility of shipments and will enable carriers to track them effectively. Digistics also enables carriers to utilize pay-for-use billing for lower costs and has a feedback option for an improved end-user experience.

The launch of technologically advanced products like Digistics seems to be the call of the hour for this beleaguered Zacks Rank #4 (Sell) stock to improve its balance sheet position. The company has been a laggard in the recent times, with an average loss of 5.3% against a gain of 5.9% in the last three months for the Zacks categorized IT Services industry.



With over 45 years of experience in the aviation industry, Unisys has created a niche market as more than 20% of the world’s air cargo shipments are processed through it. Unisys is poised to provide its customers the latest technology applications, which gives it an edge over its peers. The information technology industry is presently undergoing a transition phase, forging new disruptive trends in cloud mobility, big data, social computing and increasing awareness of cyber security. In order to capitalize on the trends, Unisys is rationalizing its services and solution portfolio by shifting its offerings to cloud-based and software-as-a-service delivery models.

Unisys is also concentrating on business opportunities in fewer, more profitable sectors in the IT marketplace. To drive future growth, the company is focusing its resources and investments in four targeted, high-potential market areas, including security (IT security and physical security), data center transformation and outsourcing services, end-user outsourcing and support services, and applications modernization and outsourcing services. As it seeks to keep up with the evolution in the IT industry, the company’s services unit looks set to take advantage of growth prospects in high-margin services.

Some better-ranked stocks in the industry include Wix.com Ltd. (WIX - Free Report) , Computer Task Group Incorporated , and CDW Corporation (CDW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wix.com has a strong long-term earnings growth expectation of 20%.

Computer Task Group is another strong performer in the industry with a solid earnings history, beating estimates thrice in the trailing four quarters for an average positive surprise of 35%. It also has a healthy long-term earnings growth expectation of 10%.

CDW Corporation has a long-term earnings growth expectation of 8%. The stock also has a healthy positive earnings history, beating estimates in three of the trailing four quarters for an average positive surprise of 5.9%.

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