Here's Why Investing in Motorola Solutions (MSI) Makes Sense

An image of stocks on a display
Credit: Shutterstock photo

Motorola Solutions, Inc.MSI has impressed investors with its recent earnings streak, having surpassed estimates in each of the four trailing quarters. Also, the company's leading position as a communications equipment manufacturer bodes well for future growth.

The company's share price increase reflects its impressive performance, exhibiting investor optimism over the stock. In the past year, the company has gained 23.9% against the industry 's decline of 2.6%. We believe Motorola, which enjoys a strong foothold across markets, has several growth drivers working in its favor. Read on to find out the key catalysts at the moment.

Factors to Consider

Motorola remains poised to gain from robust organic growth, disciplined capital deployment and a favorable global macroeconomic environment. The company expects to see strong demand across land mobile radio products, services and software while the Avigilon acquisition is likely to continue outperforming expectations.

As the leading provider of mission-critical communication products and services for government and commercial customers alike, Motorola has ensured a steady revenue stream from this niche market. In an effort to further expand its public safety measures, the company has also launched new broadband service, high power mobile radio and mobile app solutions, dedicated to public security. Moreover, its competitive position along with attractive portfolio for large addressable markets and healthy balance sheet augur well for future growth.

Owing to solid quarterly revenues and earnings growth, management has raised guidance for 2018. Full-year non-GAAP earnings are currently anticipated to lie within the $7-$7.05 per share range on revenue growth of approximately14.5%, up from the previous guidance of $6.79-$6.89. The guidance reflects an expectation of minimal impacts from tariffs, given the company's very limited exposure to China.

Zacks Rank & Other Key Picks

The stock currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks from the same industry are QUALCOMM Incorporated QCOM , Ubiquiti Networks, Inc. UBNT and Harris Corporation HRS . While QUALCOMM and Ubiquiti Networks sport a Zacks Rank #1 (Strong Buy), Harris carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

QUALCOMM surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 18.47%.

Ubiquiti Networks surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 11.30%.

Harris outpaced estimates in each of the preceding four quarters, the average earnings surprise being 7.06%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

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

Harris Corporation (HRS): Free Stock Analysis Report

Motorola Solutions, Inc. (MSI): Free Stock Analysis Report

Ubiquiti Networks, Inc. (UBNT): Free Stock Analysis Report

QUALCOMM Incorporated (QCOM): Free Stock Analysis Report

To read this article on 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


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More