The networking and communication industry has become bedrock for many organizations and businesses that are seeking to recover from COVID-19-pandemic-led damages and build new operational structures that are suited to the new reality created by the pandemic. As such, the growing adoption of edge computing, IoT, 5G solutions, and other advanced technologies, which help businesses work more effectively, should keep driving the growth of networking companies.
The demand for networking solutions has been increasing in healthcare, manufacturing, retail, and other industries. And as next-generation communication technology explodes, with many organizations adopting hybrid work models, the demand for more widespread network connectivity should increase.
So, in the event that you have set aside $5000 to invest in stocks that you plan to hold for the long haul, we think you should consider investing in Motorola Solutions, Inc. (MSI – Get Rating) and Nokia Corporation (NOK – Get Rating). These two networking companies have been expanding their mobile networking solutions and enhancing their next-generation technology capabilities to capitalize on the industry tailwinds.
Leading data communications and telecommunications equipment provider MSI offers mission-critical communications and analytics solutions in the United States, the United Kingdom, Canada, and internationally. The Schaumburg, Ill., company operates through Products and Systems Integration and Services and Software segments. It offers services to more than 100,000 public safety and commercial customers globally.
On July 19, MSI introduced its Compass Decision Management System, the newest addition to its video security and analytics portfolio. The system will allow it to provide organizations with solutions to respond to real-time events, such as intercom calls, intrusion, and fire alarms, and have full visibility into their security operations.
Also this month, the company agreed to acquire Openpath Security Inc., a mobile access control provider. MSI expects to close the transaction by month’s end. The acquisition should enable the company to provide situational awareness to its clients by combining its video security and access control solutions.
During the fiscal first quarter, ended April 3, 2021, MSI’s net sales were $1.77 billion, representing a 7.1% increase from the prior-year quarter, driven by North American and international growth. Its non-GAAP operating margin was 23.2%for this quarter, up from 21% in the year-ago quarter. The company’s net income came in at $244 million, up 23.9% year-over-year. Its non-GAAP EPS increased 25.5% year-over-year to $1.87. MSI’s operating cash flow totaled $370 million, compared to $308 million in the prior-year period.
A $2.10 consensus EPS estimate for the next quarter, ending September 2021, represents a 7.7% improvement year-over-year. The $8.08 billion consensus revenue estimate for the current year represents a 9% increase from the same period last year. MSI’s stock has gained 55.9% over the past year to close yesterday’s trading session at $220.12.
It’s no surprise that MSI has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.
MSI has a B grade for Growth, Stability, and Quality. Of the 55 stocks in the Technology – Communication/Networking industry, it is ranked #9.
Click here to view additional MSI ratings for Momentum, Value, and Sentiment.
Based in Finland, NOK is a global leader in mobile and fixed-network solutions. It operates through Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies segments. The company provides IP/optical networking solutions, fiber access products, network infrastructure and professional services, and maintenance services.
This month, NOK and Vodafone launched a…
Continue reading at STOCKNEWS.com