Why CommScope Stock Was on Fire Today
A great many investors were eagerly dialing in to communications equipment purveyor CommScope (NASDAQ: COMM) on Thursday, after the company made the pages of a famous magazine. The shares bounced almost 12% higher, comparing more than favorably to the slightly over 1% gain of the benchmark S&P 500 index.
Landing on an ESG list
Before market open, CommScope said that it had again made Newsweek's list of America's Most Responsible Companies for the compilation's 2024 edition. Further, this marks the fifth time it's been included in the five-year history of the list.
Corporate responsibility, in Newsweek's words, "encompasses environmental, social, and corporate governance (ESG). However, at the core is the idea that businesses should support the communities in which they belong."
All told, 600 companies appear on the list, ranked by an overall score that takes the above factors into consideration. CommScope's position was No. 125, with a total score of just under 80. With that kind of showing, it beat such familiar corporate names as Deere, The Home Depot, and -- elsewhere in the telecom sphere -- T-Mobile.
In its press release on the placement, CommScope quoted CEO Chuck Treadway as saying: "We work diligently across our business to implement changes that drive positive outcomes around sustainability, corporate governance and diversity. We are pleased to see the results and are grateful to have them recognized."
It's nice to be a winner
Newsweek isn't the influential omnibus news and features magazine it once was. Nevertheless, it has a well-recognized brand name and history. While CommScore's placing on the list probably won't lead to a surge in business, it should be reassuring to partners and clients alike that the company is reliable and trustworthy.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Deere and T-Mobile US. The Motley Fool has a disclosure policy.
