U.S. Markets close in 27 mins

The Zacks Industry Rank Highlights: Arista Networks, Plantronics, Knowles and Airgain

Zacks Equity Research
MKS Instruments (MKSI) first-quarter 2019 results are dented by lower semiconductor spending despite contribution from Electro Scientific Industries that was acquired in the quarter.

For Immediate Release

Chicago, IL – March 27, 2019 - Stocks featured in this week's Zacks Industry Rank analysis include Arista Networks, Inc. ANET, Plantronics PLT, Knowles Corp. KN and Airgain, Inc. AIRG.

Communications Components: The Means of Reading Thought

“We wind a simple ring of iron with coils; we establish the connections to the generator, and with wonder and delight we note the effects of strange forces which we bring into play, which will allow us to transform, to transmit and direct energy at will.

“In a time not distant, it will be possible to flash any image formed in thought on a screen and render it visible at any place desired. The perfection of this means of reading thought will create a revolution for the better in all of our social relations.”

-- Nikola Tesla

Here we are. In Nikola Tesla’s future world! We call it 2019.

The 24-company strong Communication Components Industry is a key part of the growth-stock-oriented Computer and Technology Sector.

This hot group is currently ranked by Zacks at the top 4% of industries. Specifically, this tech industry ranked number #11 out of 256 Zacks industries.

Our industry heat map shows that top ranking has held up well for a number of weeks in a row.

That’s tough to beat.

Because Communication Components rank in the top half of Zacks Ranked Industries, we expect shares here to outperform the broad U.S. stock market over the next 3 to 6 months.

Dig a little deeper.

The current share returns story does prove that hot industry statement to be true. The Communication - Components showered shareholders with an outperforming +22.95% YTD return, nearly double the S&P 500 index at a +12.09% YTD return.

Look at 3 and 5-year returns horizons too, and there is no difference. This industry outperformed the S&P 500 easily across both longer time spectrums.

Top Zacks #1 Rank (STRONG BUY) Communication Component Stocks—

I listed them in order of market capitalization.

(1) Arista Networks, Inc. is a $22.8B market cap (large cap) stock. The shares trade at $310 each. The forward P/E is rich at 32.5. The Zacks Growth score, again, is the attraction. It is a B.

This company is engaged in providing cloud-networking solutions for datacenter and cloud computing environments. It offers Ethernet switches, pass-through cards, transceivers, cards and enhanced operating systems, host adapter solutions and networking services.

The company serves a range of industries, including Internet companies, service providers, financial services organizations, government agencies, and media and entertainment companies.

Arista Networks, Inc. is headquartered in Santa Clara, California.

(2) Plantronics is a $1.8B market cap (mid cap) stock. Shares trade at $45. The forward P/E is low at 9.7, giving it a Zacks Value score of B. The Zacks Growth score of B is also attractive.

The company is a global leader in audio communications for businesses and consumers. They have pioneered new trends in audio technology for 50 years, creating innovative products that allow people to simply communicate.

From unified communication solutions to Bluetooth® headsets, they deliver uncompromising quality, an ideal experience and extraordinary service.

Plantronics is used by every company in the Fortune 100, as well as 911 dispatch, air traffic control and the New York Stock Exchange.

(3) Knowles Corp. is a $1.5B market cap (mid cap) stock. The forward P/E is attractive at 15.1. But the Zacks VGM score is weak at D.

The company operates as a supplier of advanced micro-acoustic, specialty components, and human interface solutions.

The company designs and manufactures acoustic products, including microphones, speakers, and receivers for the handset, tablet and other consumer electronic markets.

It also designs and manufactures electronic components used in medical and life science applications and solutions and components used in communications infrastructure and various other markets.

Knowles Corporation is headquartered in Itasca, Illinois.

(4) Airgain, Inc. is $124M market cap (small cap) stock. Shares trade around $12.70 each. The forward P/E is rich at 43.7. The Zacks Growth score is the attraction, with an A here.

This company a provider of embedded antenna technologies. It offers antennas for the devices which are deployed in carrier, enterprise and residential wireless networks and systems, including set top boxes, access points, routers, gateways, media adapters and digital televisions.

The company also offers residential wireless local area network or wireless fidelity to carriers, original equipment manufacturers, original design manufacturers and system designers.

Airgain, Inc. is based in San Diego, California.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Airgain, Inc. (AIRG) : Free Stock Analysis Report
 
Plantronics, Inc. (PLT) : Free Stock Analysis Report
 
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
 
Knowles Corporation (KN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research