We have maintained our Neutral recommendation on
), as its bottom line meets the Zacks Consensus Estimate while
the top line beats the same in the recently concluded
Why Remains Neutral?
Amdocs is well positioned with the largest customer base and
the broadest product line in the industry, including a full suite
of end-to-end solutions for both Business Support Systems (BSS)
and Operations Support Systems (OSS). Business in North America
was comparatively strong with Europe showing signs of
improvement. Furthermore, the emerging Asia Pacific markets are
witnessing double-digit revenue growth.
Huge opportunities remain with Amdocs as more telecom
companies have started deploying 3G and 4G networks. Since the
telecom industry is moving toward tiered and usage based billing,
we believe the innovative real-time converged billing system of
Amdocs will receive increasing market traction.
Despite these positives, Amdocs is exposed to the global
economic downturn, particularly those events that affect the
telecommunications industry. Macroeconomic scenario is yet to
fully come out of the turmoil. Delay in business transformation
on the part of carriers may reduce capital spending.
Moreover, economic and political uncertainty in Europe may
jeopardize the company's financials going forward. Furthermore,
as the company is operating globally, it is also exposed to
foreign currency exchange rate risk.
Currently, Amdocs has a Zacks Rank #3 (Hold).
Other Stocks Outlook in Related Industries
Other stocks in this sector like
) are all set to gain from the robust growth of LTE deployments,
in the upcoming days.
Currently, Unisys Corporation has a Zacks Rank #1 (Strong
Buy), ServiceNow, Inc. has a Zacks Rank #2 (Buy) and Convergys
Corporation has a Zacks Rank #3, (Hold) for the short term.
CONVERGYS CORP (CVG): Free Stock Analysis
AMDOCS LTD (DOX): Free Stock Analysis Report
SERVICENOW INC (NOW): Free Stock Analysis
UNISYS (UIS): Free Stock Analysis Report
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