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Motorola Poised on Strong Foothold in Public Safety Domain

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Motorola Solutions, Inc. MSI recently announced that it has been chosen by the North West Ambulance Service (“NWAS”) NHS Trust — the second largest ambulance trust in England — to provide 450 community first responders with its ADVISOR TPG2200 TETRA two-way pagers. Notably, the communications equipment maker’s new pagers are likely to upgrade the mission-critical alert systems of volunteer first responders on the Airwave public safety network, while improving response time during medical emergencies. The pager’s built-in GPS receiver allows control rooms of NWAS to send messages to available volunteers within a three-mile radius of an incident. Controllers can instantaneously identify and allocate the accessible resources using NWAS’ computer-aided design, cutting-edge products and the nationwide Airwave public safety network.

Motorola also announced that it has been selected by Springfield, OH and Clark County, OH to provide command center software to receive incoming 9-1-1 calls, share decisive incident information and communicate across agencies for an appropriate response. The company’s state-of-the-art technologies, preferred by Springfield and Clark County, work in unison to disseminate information in a fast and seamless manner during an incident response. This includes 9-1-1 emergency call handling, Computer-Aided Dispatch, Records Management Software, Dispatch consoles and Ohio Multi-Agency Radio Communication System ASTRO 25 statewide system. Motorola boasts an industry-leading position in integrated software, which offers the best options for efficient communications between citizens and first responders.

In addition, the company stated that it has acquired South Carolina-based Avtec, Inc. — a provider of dispatch solutions for public safety and commercial customers. The buyout will likely expand Motorola’s public safety and commercial portfolios, while allowing it to offer a comprehensive end-to-end platform for customers to communicate and coordinate resources. (Read more: Motorola Expands Public Safety and Commercial Portfolio)

As a top provider of mission-critical communication products and services, Motorola has ensured a steady revenue stream from this niche market. The company intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem. Motorola is poised to benefit from both organic growth and acquisition initiatives, disciplined capital deployment and a favorable global macroeconomic environment. The company expects to show strong demand across land mobile radio products, services and software.

Furthermore, its competitive position and an attractive portfolio for large addressable markets augur well for healthy revenue growth. Driven by diligent execution of operational strategies alongside increasing market traction of coveted solution offerings, shares of Motorola have recorded an average return of 29.6% compared with the industry’s rise of 1.6% over the past year.

Currently, Motorola carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader industry are Harris Corporation HRS, CenturyLink, Inc. CTL and Clearfield, Inc. CLFD, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Harris has a long-term earnings growth expectation of 8%.

CenturyLink has a long-term earnings growth expectation of 5.3%.

Clearfield currently has a forward P/E (F1) of 48.9x.

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