Here's Why Viavi (VIAV) is a Promising Pick for Investors
Shares of Viavi Solutions Inc. VIAV have returned 21.8% in the past six months compared with 40.6% growth of the industry. Currently, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
This San Jose, CA-based company delivered a trailing four-quarter earnings surprise of 20.2%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 5.7% upward over the past 30 days.
Growth Drivers
Viavi is a global provider of network test, monitoring and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It is also a leader in light management solutions for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive and defense applications.
The company operates through three segments — Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). Of late, the OSP business has been benefiting from strong demand for 3D sensing and anti-counterfeiting products.
Notwithstanding the near-term macroeconomic uncertainty, management expects growth in 2021 to be driven by the secular demand for 5G wireless, fiber and 3D sensing. Viavi has a comprehensive product portfolio that offers end-to-end network visibility and analytics. It engages in targeted restructuring activities to consolidate its operations and better align businesses with evolving market conditions and investment strategy.
A few days ago, Viavi announced enhancements to its OneAdvisor-800 all-in-one tool to streamline cell site maintenance of 5G and 4G technologies. Three Ireland, a leading mobile operator in Ireland, deployed Viavi’s NITRO Mobile solution to enable visibility into network and service performance.
Viavi’s solutions are well placed to meet the rapidly changing industry trends, given its technology prowess, product depth and wide customer base. The company has several growth drivers in place and enjoys a strong foothold in its served markets. It is rational to believe that VIAV has more upside left.
Other Key Choices
Some other top-ranked stocks in the broader industry are Plantronics, Inc. PLT, United States Cellular Corporation USM and NIC Inc. EGOV, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Plantronics delivered a trailing four-quarter earnings surprise of 568.2%, on average.
U.S. Cellular delivered a trailing four-quarter earnings surprise of 231.1%, on average.
NIC delivered a trailing four-quarter positive earnings surprise of 27.5%, on average. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.
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