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What Makes ADTRAN (ADTN) a Promising Investment Option?
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Despite the coronavirus-induced market volatility, earnings estimates for the current fiscal for ADTRAN, Inc. (ADTN - Free Report) have increased 133% over the past 90 days, while those for the next fiscal have moved up 46.7% since November 2019, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Drivers
ADTRAN expects solid traction in its domestic markets for ultra broadband and Fiber-To-The-Home solutions along with SD access and EPON solutions despite challenging macroeconomic conditions associated with the COVID-19 pandemic. The company also anticipates a pickup in capital spending in Tier-1, Tier-2 and regional service provider market segments. ADTRAN’s global leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce costs and accelerate service delivery and deployment.
This Huntsville, AL-based communication network provider is well positioned to make the most of its customer, geographic and product diversity momentum. The company expects to gain from increased customer engagements across a comprehensive portfolio of software-defined access, 10G solutions and G.fast products, thereby enabling carriers to upgrade slower legacy networks to state-of-the-art technologies.
In order to complement the Network Solutions portfolio and enable customers to accelerate time to market, reduce costs and improve satisfaction, ADTRAN offers a complete portfolio of maintenance, turnkey network implementation, maintenance, solutions integration and managed services. The company’s network implementation services offer a full spectrum of services related to engineering (pre-construction), installation/turn-up (construction) and provisioning (post-construction), partnering with customers to tailor a program to meet each service delivery need. The ProCloud Wi-Fi service, which has been developed on the company’s virtual Wireless LAN, is opening up new opportunities as Valley Business Solutions (VBS) is utilizing its technology on a much wider scale. Apart from these products, the company has registered significant growth in its professional service activities that deploy the Total Access System components in telecommunication companies.
Additionally, ADTRAN has launched Mosaic Open Networking Alliance to foster the widespread development and industry adoption of Software Defined Networking and Network Function Virtualization solutions based on open standards. The Alliance includes two levels of engagement, the first of which comprises Collaboration Members committed to joint innovation, collaboration, insight and knowledge sharing. The second tier includes Integration Members, a community of partners who will integrate with or work within the Mosaic framework. This involves Technology Partners focused on delivering innovative programmable network functions and service partners delivering managed services, system integration and other network operation requirements.
The stock delivered a positive earnings surprise of 8.5%, on average, in the trailing four quarters, beating estimates thrice and missing once. With a healthy dividend of 3.3%, this stock appears to be an enticing investment option for the volatile market.
Other Key Picks
Some other favorably-ranked stocks in the industry are Calix, Inc (CALX - Free Report) , sporting a Zacks Rank #1, and Bandwidth Inc. (BAND - Free Report) and CommScope Holding Company, Inc. (COMM - Free Report) , both carrying a Zacks Rank #2 (Buy).
Calix delivered a positive earnings surprise of 43%, on average, in the trailing four quarters.
Bandwidth has a long-term earnings growth expectation of 13.6%. It surpassed earnings estimates in the trailing four quarters, the average positive surprise being 89.4%.
CommScope delivered a positive earnings surprise of 30.3%, on average, in the trailing four quarters.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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What Makes ADTRAN (ADTN) a Promising Investment Option?
Despite the coronavirus-induced market volatility, earnings estimates for the current fiscal for ADTRAN, Inc. (ADTN - Free Report) have increased 133% over the past 90 days, while those for the next fiscal have moved up 46.7% since November 2019, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Drivers
ADTRAN expects solid traction in its domestic markets for ultra broadband and Fiber-To-The-Home solutions along with SD access and EPON solutions despite challenging macroeconomic conditions associated with the COVID-19 pandemic. The company also anticipates a pickup in capital spending in Tier-1, Tier-2 and regional service provider market segments. ADTRAN’s global leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce costs and accelerate service delivery and deployment.
This Huntsville, AL-based communication network provider is well positioned to make the most of its customer, geographic and product diversity momentum. The company expects to gain from increased customer engagements across a comprehensive portfolio of software-defined access, 10G solutions and G.fast products, thereby enabling carriers to upgrade slower legacy networks to state-of-the-art technologies.
In order to complement the Network Solutions portfolio and enable customers to accelerate time to market, reduce costs and improve satisfaction, ADTRAN offers a complete portfolio of maintenance, turnkey network implementation, maintenance, solutions integration and managed services. The company’s network implementation services offer a full spectrum of services related to engineering (pre-construction), installation/turn-up (construction) and provisioning (post-construction), partnering with customers to tailor a program to meet each service delivery need. The ProCloud Wi-Fi service, which has been developed on the company’s virtual Wireless LAN, is opening up new opportunities as Valley Business Solutions (VBS) is utilizing its technology on a much wider scale. Apart from these products, the company has registered significant growth in its professional service activities that deploy the Total Access System components in telecommunication companies.
Additionally, ADTRAN has launched Mosaic Open Networking Alliance to foster the widespread development and industry adoption of Software Defined Networking and Network Function Virtualization solutions based on open standards. The Alliance includes two levels of engagement, the first of which comprises Collaboration Members committed to joint innovation, collaboration, insight and knowledge sharing. The second tier includes Integration Members, a community of partners who will integrate with or work within the Mosaic framework. This involves Technology Partners focused on delivering innovative programmable network functions and service partners delivering managed services, system integration and other network operation requirements.
The stock delivered a positive earnings surprise of 8.5%, on average, in the trailing four quarters, beating estimates thrice and missing once. With a healthy dividend of 3.3%, this stock appears to be an enticing investment option for the volatile market.
Other Key Picks
Some other favorably-ranked stocks in the industry are Calix, Inc (CALX - Free Report) , sporting a Zacks Rank #1, and Bandwidth Inc. (BAND - Free Report) and CommScope Holding Company, Inc. (COMM - Free Report) , both carrying a Zacks Rank #2 (Buy).
Calix delivered a positive earnings surprise of 43%, on average, in the trailing four quarters.
Bandwidth has a long-term earnings growth expectation of 13.6%. It surpassed earnings estimates in the trailing four quarters, the average positive surprise being 89.4%.
CommScope delivered a positive earnings surprise of 30.3%, on average, in the trailing four quarters.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>