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Does CommScope's Portfolio Strength Support a Strong Buy?

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Key Takeaways

  • COMM strengthens its communication infrastructure portfolio across wireless, fiber, and 5G-ready networks.
  • COMM launched the RUCKUS MDU suite with AI and Wi-Fi 7 and hit over 16 Gbps using DOCSIS 4.0 tech.
  • COMM exits legacy units via NEXT, sharpening focus on fiber broadband, data centers, and enterprise networks.

CommScope Holding Company, Inc. ((COMM - Free Report) ) recently launched the RUCKUS MDU suite, which uses AI and Wi-Fi 7 to provide fast, reliable, and easy-to-manage networks for multi-dwelling buildings. The company has set a new speed record by achieving more than 16 Gbps download speeds using DOCSIS 4.0 technology, with nearly 9.5 Gbps on a single modem. Such innovative products speak volumes about CommScope’s portfolio strength, leading to higher adoption by customers.

CommScope’s SYSTIMAX premium structured cabling and connectivity brand offers complete networking solutions from cabling to fiber systems, making it a one-stop provider that helps networks grow and perform better. Advanced and well-integrated products supported by strong research & development comprise its main strength.

CommScope is winding up its non-core businesses, like Outdoor Wireless and DAS businesses, and strengthening its core networking products to focus on faster-growing areas like fiber broadband, data centers, and modern enterprise networks. Offering many networking products, following the major connectivity trends, and continuous innovation, makes CommScope a solid investment option for investors.

How Are Competitors Faring?

CommScope faces competition from Corning Incorporated ((GLW - Free Report) ) and Amphenol Corporation ((APH - Free Report) ). Corning’s strength is innovation by developing new technologies like cost-saving 5G indoor networks, advanced automotive display glass, and next-generation materials for chip manufacturing. Corning has introduced an advanced cover glass with its latest Gorilla Armor feature that is being used in Samsung’s Galaxy S25 Ultra, offering superior scratch resistance, clarity, and durability. Ensurge recently collaborated with Corning to use its materials to improve its micro battery technology.

APH’s growth is supported by rising demand in defense, aerospace, industrial, and IT markets, powered by advanced interconnect, antenna, sensor, and fiber technologies needed for AI and next-generation systems. Continuous acquisitions have helped APH improve its products and reach more customers. APH recently acquired Trexon to expand its defense market portfolio.

COMM’s Price Performance, Valuation and Estimates

CommScope shares have gained 199.4% over the past year compared with the industry’s growth of 113.8%.

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Image Source: Zacks Investment Research

From a valuation standpoint, CommScope trades at a forward price-to-sales ratio of 0.64, below the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings estimates for 2025 have increased 27.9% to $1.65 over the past 60 days, while the same for 2026 have also increased 11.1% to $1.80.

Zacks Investment Research
Image Source: Zacks Investment Research

CommScope currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here..


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