5 Best Communication Equipment Stocks to Buy Now

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In this article we talk about 5 best communication equipment stocks to buy now. For our detailed discussion and investment thesis for investing in the communications equipment industry, click to read 10 Best Communication / 5G Stocks to Buy Now.

5. Motorola Solutions Inc (NYSE: MSI)

Motorola Solutions is a communications equipment company that was formed after the spinoff of the mobile phone division into Motorola Mobility in 2011. The company makes two-way radios and public radio systems for first-responders and law enforcement, body cameras and some software applications. In November, Motorola increased its quarterly dividend by 10.9%. In the third quarter, the company posted a non-GAAP EPS of $1.95, beating the analysts’ forecasts by $0.17. Revenue in the quarter totaled $1.87 billion, beating the consensus by $40 million.

Brandon Haley’s Holocene Advisors is one of the leading hedge funds having stakes in Motorola Solutions as of the end of the third quarter. Overall, 29 hedge funds held positions in the company entering the fourth quarter. Here is what Wedgewood Partners said about MSI in its 2020 Q2 investor letter:

“Motorola Solutions guided to a surprising -15% drop in revenue for the June quarter, as local and state government shutdowns hampered the approval and installation of new software and equipment projects. In spite of this short-term disruption to revenues, the Company grew its high margin software and services bookings +9% and guided to expanding operating margins for the year. We added to our position in Motorola Solutions as the stock traded well off its highs. The Company continues to dominate the markets for missioncritical land-mobile-radio (LMR) installations and associated command center software and services for emergency responders.”

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