Mercury Systems, Inc.MRCY is riding on impressive growth across its product groups, especially Integrated Subsystems, and Modules and Sub-assemblies segments.
Notably, this Zacks Rank #2 (Buy) company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 0.59%. The company also recorded significant top- and bottom-line year-over-year growth in these quarters.
The Zacks Consensus Estimate for the ongoing quarter remained stable at 42 cents over the past 30 days. Shares of the company have outperformed the industry 's 24% decline with an average loss of 10.5%.
Mercury is on track for another year of strong performance in fiscal 2019.
The company's significant investments in embedded computing technology reflect in its recent release of board-to-board data transmission rates of 100 Gigabits per second (Gbps).
Through this, it aims to enable faster next-generation PCIe Gen-4 Ethernet and InfiniBand high-speed switch fabrics. These fabric switches run within OpenVPX embedded computing subsystems.
This upgrade will significantly increase the bandwidth of the previous OpenVPX switch fabric through Mercury's strong modeling and design capabilities with existing backplane and module technologies.
The company's continued focus on its products business is paying off. This is evident from its results in the last reported quarter wherein it recorded double revenues from Integrated Subsystems compared with the prior-year quarter. Modules and Sub-assemblies were up 8% year over year.
The company's efforts are resulting in strong adoption of its integrated subsystem products. Mercury bagged a string of deals of significant value in the last reported quarter. These include a $5 million order for rugged, embedded processing subsystems for shipboard radar processing and a $20.5 million follow-on order to provide integrated subsystems to the U.S. Navy.
Other Stocks to Consider
Some other top-ranked stocks in the broader Computer and Technology sector are Synopsys, Inc. SNPS , eGain EGAN and Symantec Corporation SYMC , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Long-term earnings growth rate for Synopsys, eGain and Symantec is projected to be 10%, 30% and 7.9%, respectively.
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