CommScope Holding Company, Inc. COMM recently announced the divestiture of its Virtual Converged Cable Access Platform Evolution (vCCAP Evo) and E6000 shelves to Vidanet for an undisclosed amount. Through the sale of this cloud-native, highly scalable virtualized CCAP, CommScope is set to accelerate the Hungary-based telecommunications company’s transition to a Distributed Access Architecture (DAA) network, helping it grow its network cost-effectively.
Digging Deep Into COMM-Vidanet Deal
As networks undergo a fundamental technology and architectural shift toward software???defined, distributed, virtualized and converged networks, the demand for greater service agility and operational simplicity has become paramount. The deployment of CommScope’s state-of-the-art vCCAP Evo solution will serve as the primary management component of Vidanet’s DAA transition, allowing the latter to shift data over the cable service interface specification signal generation from specialized hardware like CCAP or Cable Modem Termination System (CMTS) to the E6000 series Remote PHY (R-PHY) shelves.
CommScope’s vCCAP Evo solution offers the highest flexibility to operators, enabling them to form the most cost???effective cluster layout leveraging only the required server hardware for each site while ensuring that additional data plane capacity can be achieved at any time without impacting other customers. These advanced capabilities of the platform, along with the automated provisioning, configuration and monitoring of the R-PHY shelves, will likely support Vidanet to roll out new network services more quickly and efficiently than traditional hardware-based CMTS platforms.
Furthermore, to improve the scalability and performance of Vidanet’s network, CommScope will deploy its intelligent access controller, which provides critical network management features such as zero-touch activation for R-PHY devices, fault management and disaster recovery.
Does COMM Stock Stand to Gain From the Deployment?
CommScope is focused on sound technology, a highly efficient supply chain and a commitment to continuous improvement. This will potentially make the company a preferred partner for all telecommunications businesses as the entire industry moves toward 5G. With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, CommScope is dedicated to developing solutions designed to support the evolving industry needs. The company’s solutions have been specifically designed to help global service providers efficiently deploy fiber networks.
Virtualizing Vidanet’s CMTS core with CommScope’s vCCAP Evo solution will likely enable the former to integrate new E6000 series shelves into the network with minimal service disruption in a cost-effective and eco-friendly way.
All these advancements will likely attract more customers for CommScope, leading to higher revenues in the upcoming quarters. An improved financial performance is likely to propel the stock upward.
COMM Stock Price Performance
Shares of CommScope have rallied 375.5% over the past year compared with the industry’s growth of 56.6%.
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COMM’s Zacks Rank and Other Key Picks
CommScope currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader industry have been discussed below.
InterDigital IDCC flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.
Arista Networks, Inc. ANET, sporting a Zacks Rank of 1 at present, supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.
Arista delivered a trailing four-quarter average earnings surprise of 12.87%. It has a long-term growth expectation of 14.41%.
Celestica Inc. CLS carries a Zacks Rank #2 (Buy) at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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CommScope Holding Company, Inc. (COMM) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
