Ericsson ERIC and BT have inked a multi-million-dollar agreement to offer private 5G networks to companies in the U.K. market by investing heavily in next-generation infrastructure.
Per the agreement, the companies will offer 5G private solutions to businesses and enterprises across the U.K. These private networks have the potential to offer secure and higher-quality connections with lower latency and glitches compared with the conventional Wi-Fi networks.
Telecoms carriers have been attempting to sell private 5G networks to enterprise customers to revolutionize, streamline and improve their coverage. The agreement with Ericsson will enable BT to grow sales of next-generation mobile network technology products to businesses and organizations in sectors such as education, healthcare and logistics.
Ericsson’s private 5G network is well-suited for users such as factories and education campuses due to its high-performing indoor and outdoor 5G cellular coverage with security and low latency. As a result of the private 5G network, new innovative applications and IoT can be used to improve productivity and business operations, and increase cost savings via real-time data sharing, automation and robotics.
Ericsson is well-positioned to cash in on the market momentum with its competitive 5G product portfolio. The company continues to execute its strategy to become a leading mobile infrastructure provider and establish a focused enterprise business. Investments in research and development have established it as one of the leading providers of 5G communications equipment.
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ERIC has lost 38.6% over the past year compared with the industry’s decline of 5.7%.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-Ranked Stocks to Consider
Coupa Software Incorporated COUP belongs to the broader Zacks Computer and Technology sector. It currently carries a Zacks Rank #2 (Buy). Coupa Software has a long-term earnings growth expectation of 22.32%.
Coupa Software’s smart and efficient spend-control programs, which provide enhanced reporting and analytics, have been the primary reason behind its expanding clientele.
SAP SE SAP, presently carrying a Zacks Rank #2, is a key pick for stock investors. SAP has a long-term earnings growth expectation of 5.89%.
SAP, with its Rise with SAP solution, was adopted by clients, including Accenture, Canon Production Printing, Exide Industries Limited, NEC Corporation, Qinqin Food, Rising Auto and TELUS.
Silicon Motion Technology SIMO also carries a Zacks Rank #2 at present. It has a long-term earnings growth expectation of 9%, with an earnings surprise of 1.05% on average in the trailing four quarters.
Silicon Motion has established itself as the leading merchant supplier of client SSD controllers to module makers, including most leaders in the United States.
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