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Zayo Chosen by Fintech Company for Wavelengths Solution

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Zayo Group Holdings, Inc. recently announced that it has been chosen by a global fintech company to provide wavelengths solution for the latter’s core network. The fiber optic bandwidth infrastructure company did not disclose its latest customer’s name and terms of the deal. The company’s striking track record of partnering with customers on their exclusive requirements has helped Zayo win this deal over an existing provider.

Notably, this nationwide solution’s multiple primary and diverse routes will likely connect more than 10 of the customer’s facilities in the United States. Zayo’s wavelengths provide resolute bandwidth, security and latency to help its customers scale up their infrastructure to be on par with technological advancements, in a seamless manner.

Zayo's extensive network footprint, diversified product portfolio and ability to penetrate in different markets are laudable. The company continues to enhance global reach by expanding its fiber footprint and forging strategic partnerships with local providers. It has been experiencing broad-based demand across all the customer verticals, which should drive its top line.

Furthermore, Zayo is on a constant lookout for strategic acquisitions to improve its operating leverage, extend network reach and broaden customer base. In fact, the company announced its plan to separate into two publicly traded companies to focus better on its businesses. One of the entities will focus on providing core communications infrastructure while the other will leverage infrastructure to provide solutions for a broad set of enterprise customers. The company expects the process to be complete in late 2019. It is assessing multiple options to achieve its long-term objectives while boosting shareholder value.

However, shares of Zayo have incurred an average loss of 0.2% against the industry’s rise of 12% over the past three months. It remains to be seen if such coveted solution offerings to enterprise customers can support its profitability in the coming days.

Zayo currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Calix, Inc. (CALX - Free Report) , Harris Corporation and Motorola Solutions, Inc. (MSI - 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.

Calix has a long-term earnings growth expectation of 6%.

Harris has a long-term earnings growth expectation of 8%.

Motorola has a long-term earnings growth expectation of 8%.

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