We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mercury Rides on Strong Portfolio & Expanding Clientele
Read MoreHide Full Article
Mercury Systems (MRCY - Free Report) has been outperforming the industry in the past year on the back of its growing portfolio. The company has launched a number of new solutions that not only strengthened its market share but also expanded clientele.
Making full use of its technological knowhow and relationship with defense contractors, Mercury is forging ahead in the C4ISR (also referred to C4I) market. C4ISR refers to Communication, Command & Control, Computers, Intelligence, Surveillance & Reconnaissance, and EW.
Per Zion Market Research, the C4ISR market is expected to witness a CAGR of 3.6% during the period between 2018 and 2024 to hit $127.2 billion globally.
The company’s continued efforts and investments, which have resulted in successful completion of deals, have created about $800 million worth of potential C4I opportunity based on the estimated lifetime value of its top 30 programs.
Notably, Mercury’s shares have returned 39.3% against the industry’s decline of 1%.
Expanding Portfolio: Key Catalyst
Recently, the company announced that it will offer a hardened security solution jointly designed by Lockheed Martin (LMT - Free Report) and Intel (INTC - Free Report) .
The solution will be manufactured and tested in Mercury’s Defense Microelectronics Activity -accredited facilities. It will provide affordable, hardened, full stack security for defense and aerospace customers. In terms of performance, the solution is well suited for secure and rugged tactical edge computing.
The new solution, which is likely to hit the shelves around mid-2019, is expected to help Mercury expand its product portfolio and boost presence in two key areas — embedded computing systems market and C4ISR market.
Mercury has expertise in secure rackmount designing and custom embedded Intel solutions development of more than 30 years. Its embedded computing servers including the suite of EnsembleSeries blades have delivered processing solutions with long lifecycles, high performance, environmental resiliency, interoperability and SWaP optimization for 35 years.
Additionally, the company has been significantly investing in embedded computing technology over the past quarters.
It recently launched the EnsembleSeries HDS6605, a powerful, general-purpose processing 6U OpenVPX blade server, in a bid to boost its capabilities in embedded computing. This is also a step ahead in its efforts in electronic warfare and rugged defense. The blade servers, powered by Second Generation Intel Xeon Scalable processors, feature hardware-enabled support for artificial intelligence applications.
Further, Mercury also released board-to-board data transmission rates of 100 Gbps. Through this, it aims to enable faster next-generation PCIe Gen-4 Ethernet and InfiniBand high-speed switch fabrics. These fabric switches run within OpenVPX embedded computing subsystems.
Per Mordor Intelligence, the global embedded computing systems market is expected to witness a CAGR of 6.6% over the period of 2018 to 2023. This presents significant growth opportunity for Mercury.
Long-term earnings growth for Cadence is projected to be 12%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Mercury Rides on Strong Portfolio & Expanding Clientele
Mercury Systems (MRCY - Free Report) has been outperforming the industry in the past year on the back of its growing portfolio. The company has launched a number of new solutions that not only strengthened its market share but also expanded clientele.
Making full use of its technological knowhow and relationship with defense contractors, Mercury is forging ahead in the C4ISR (also referred to C4I) market. C4ISR refers to Communication, Command & Control, Computers, Intelligence, Surveillance & Reconnaissance, and EW.
Per Zion Market Research, the C4ISR market is expected to witness a CAGR of 3.6% during the period between 2018 and 2024 to hit $127.2 billion globally.
The company’s continued efforts and investments, which have resulted in successful completion of deals, have created about $800 million worth of potential C4I opportunity based on the estimated lifetime value of its top 30 programs.
Notably, Mercury’s shares have returned 39.3% against the industry’s decline of 1%.
Expanding Portfolio: Key Catalyst
Recently, the company announced that it will offer a hardened security solution jointly designed by Lockheed Martin (LMT - Free Report) and Intel (INTC - Free Report) .
The solution will be manufactured and tested in Mercury’s Defense Microelectronics Activity -accredited facilities. It will provide affordable, hardened, full stack security for defense and aerospace customers. In terms of performance, the solution is well suited for secure and rugged tactical edge computing.
The new solution, which is likely to hit the shelves around mid-2019, is expected to help Mercury expand its product portfolio and boost presence in two key areas — embedded computing systems market and C4ISR market.
Mercury has expertise in secure rackmount designing and custom embedded Intel solutions development of more than 30 years. Its embedded computing servers including the suite of EnsembleSeries blades have delivered processing solutions with long lifecycles, high performance, environmental resiliency, interoperability and SWaP optimization for 35 years.
Additionally, the company has been significantly investing in embedded computing technology over the past quarters.
It recently launched the EnsembleSeries HDS6605, a powerful, general-purpose processing 6U OpenVPX blade server, in a bid to boost its capabilities in embedded computing. This is also a step ahead in its efforts in electronic warfare and rugged defense. The blade servers, powered by Second Generation Intel Xeon Scalable processors, feature hardware-enabled support for artificial intelligence applications.
Further, Mercury also released board-to-board data transmission rates of 100 Gbps. Through this, it aims to enable faster next-generation PCIe Gen-4 Ethernet and InfiniBand high-speed switch fabrics. These fabric switches run within OpenVPX embedded computing subsystems.
Per Mordor Intelligence, the global embedded computing systems market is expected to witness a CAGR of 6.6% over the period of 2018 to 2023. This presents significant growth opportunity for Mercury.
Zacks Rank & A Key Pick
Mercury currently carries a Zacks Rank #3 (Hold).
A top-ranked stock in the broader Computer & Technology sector is Cadence Design Systems, Inc. (CDNS - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Cadence is projected to be 12%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>