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Here's Why You Should Hold on to ARRIS (ARRS) Stock Now


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On Dec 20, we issued an updated research report on ARRIS International plc ARRS . The stock has been downgraded to a Zacks Rank #3 (Hold) from a Zacks Rank #2 (Buy).

Positives

The company has an impressive earnings history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters with an average beat of 10%.

Moreover, we expect the company to perform well on the bottom-line front in the fourth quarter on its strong product portfolio. The company expects earnings (adjusted) between 74 cents and 80 cents in the fourth quarter of 2017.

We are impressed by the company's recently inked deals to broaden its product portfolio. ARRIS recently completed the acquisition of Ruckus Wireless and ICX Switch units from Broadcom. The buyout is expected to be value accretive to its earnings in the first year.

The company's efforts to reward shareholders through buybacks are also encouraging. ARRIS has bought back 5.7 million shares for $147 million so far this year.

On another positive note, the stock has seen the Zacks Consensus Estimate for current-quarter earnings being revised 1.3% upward in the last 30 days. Moreover, for 2017, the same has been revised 1.2% upward over the last 60 days.

The company has a VGM score of A, which further bolsters its attractive status. Here V stands for Value, G stands for Growth and M stands for Momentum.

In view of the above positives, we believe investors should retain the ARRIS stock in their portfolio now.

ARRIS International PLC Price and Consensus

ARRIS International PLC Price and Consensus | ARRIS International PLC Quote

Key Picks

Some better-ranked stocks in the same space are Arista Networks, Inc. ANET , SeaChange International, Inc. SEAC and Westell Technologies, Inc. WSTL , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Shares of Arista Networks, SeaChange International and Westell Technologies have surged more than 100%, 60% and 53%, respectively, in a year.

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ARRIS International PLC (ARRS): Free Stock Analysis Report

SeaChange International, Inc. (SEAC): Free Stock Analysis Report

Westell Technologies, Inc. (WSTL): Free Stock Analysis Report

Arista Networks, Inc. (ANET): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: ARRS , SEAC , WSTL , ANET


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