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Comtech (CMTL) to Offer Transportable Troposcatter Systems

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Comtech Telecommunications Corp. (CMTL - Free Report) recently announced that its subsidiary, Comtech Systems, Inc. — a part of the Government Solutions segment — secured an order for its Modular Transportable Transmission System (MTTS) troposcatter terminals from a foreign subsidiary for a US-based prime contractor. Valued at $31 million, the deal was received during fourth-quarter fiscal 2018. 

Per the deal, the company will provide its transportable troposcatter system to an international end-customer. The use of these troposcatter systems by the end-customer will be as part of a deployable communications network for an Asia Pacific military. Notably, the sale of transportable troposcatter systems, include the supply of Comtech’s quad-diversity terminals. Impressively, the company’s MTTS terminals enable users to support high data rate beyond line-of-sight communications links in a deployed network.  

Existing Business Scenario

Comtech has successfully created a niche market for highly secure wireless solutions to defend global security and improve public safety. Additionally, the company’s market-leading products for messaging, location and deployable wireless communications offer a competitive advantage over its peers.

In the past three months, this Zacks Rank #1 (Strong Buy) company has outperformed the industry it belongs to. The stock has gained 8.8% compared with the industry’s 5.8% upside. 

The company also offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to the users. Furthermore, Comtech’s diverse customer base enables it to mitigate the risks associated with a particular market.

Meanwhile, the company’s recent earnings streak has managed to impress investors, wherein its bottom line surpassed estimates in each of the trailing four quarters. The company’s strong focus on developing innovative products, systems and services for advanced communications solutions along with its market diversity is likely to prove accretive to its portfolio.

Other Stocks to Consider

Some other top-ranked stocks from the same space include Motorola Solutions, Inc. (MSI - Free Report) , Ubiquiti Networks, Inc. (UBNT - Free Report) and AMETEK, Inc. (AME - Free Report) . While Motorola Solutions sports a Zacks Rank of 1, Ubiquiti Networks and AMETEK carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Motorola Solutions surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 12.09%.

Ubiquiti Networks outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 8.88%.

AMETEK exceeded estimates in the preceding four quarters, with an average positive earnings surprise of 6.03%.

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