Markets
PLT

ARRIS International Displays Bright Prospects Amid Risks

An image of multiple stacks of coins
Credit: Shutterstock photo

On Sep 4, we issued an updated research report on ARRIS International plcARRS .

In the past month, this Zacks Rank #3 (Hold) stock has yielded a return of 7.3% compared with the 's gain of 4.2%.

In the past month, this Zacks Rank #3 (Hold) stock has yielded a return of 7.3% compared with the industry 's gain of 4.2%.

Existing Scenario

ARRIS is transforming the entertainment experience through a holistic approach to content delivery, leveraging its expertise in cloud, network and home, to help providers anticipate demand for more personalized, relevant, and mobile experiences. The company also collaborates with its global customers to transform their entire delivery chain from content creation to consumption. All these augur well for the company's solid long-term growth.

ARRIS' array of wireless and wired products and solutions allows it to be flexible and customer-driven, creating competitive advantages. Recently ARRIS' subsidiary, Ruckus Networks, announced the availability of SmartZone network controllers - enhanced versions of its SmartZone WLAN controllers. The SmartZone network controllers are powered by the company's newly released SmartZoneOS software. In addition, Ruckus Networks unveiled a new Cloud-Ready Specialization Program for its new and existing channel partners. It will help them enhance renewable revenue streams across multiple verticals in a rapidly growing Wi-Fi infrastructure market.

Consumer demand for high speed Internet with more capacity continues to accelerate, courtesy of increasing consumption of video. As a matter of fact, the company aims to enable customers to manage this exponential bandwidth growth cost effectively through steady investments in state-of-the-art technologies.

However, customer concentration remains high for ARRIS with few customers accounting for a significant portion of its top line. Moreover, the company's international operations are significantly exposed to foreign currency exchange rate risk.

Also, high operating expenses have been hurting the company's bottom-line growth and may hamper financial performance going forward

Key Picks

Some top-ranked stocks from the same space are Plantronics, Inc. PLT , Acacia Communications, Inc. ACIA and Corning Incorporated GLW . While Plantronics sports a Zacks Rank #1 (Strong Buy), Acacia and Corning carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Plantronics surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 21.09%.

Acacia exceeded the Zacks Consensus Estimate in each of the trailing four quarters with an average positive earnings surprise of 37.64%.

Corning outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 3.79%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ARRIS International plc (ARRS): Free Stock Analysis Report

Plantronics, Inc. (PLT): Free Stock Analysis Report

Acacia Communications, Inc. (ACIA): Free Stock Analysis Report

Corning Incorporated (GLW): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

PLT ACIA GLW

Other Topics

Stocks

Latest Markets Videos