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How Telecom Equipment Stocks Can Bolster you Portfolio: Cisco Systems, Inc. (CSCO), Alcatel Lucent SA (ALU)

Like ALU, Tellabs, Inc. (NASDAQ:TLAB) has been unprofitable of late. Nevertheless, a slow earnings recovery is being fueled partly by cost restructuring. On the top line, a bounceback could result from the revamping of product lines and the overall upturn in equipment demand. The same holds true for Ciena Corporation (NASDAQ:CIEN). That company is potentially well-situated for a good year in 2013, after suffering losses in 2012.

The Stocks

Readers of this blog are commended for taking heed in the suggestions I’ve made and looking into the individual stocks on their own. The rather volatile telecom equipment sector may well be ready to gain ground. Cisco shares are appealing at this juncture, and the rest of the industry may well follow suit. The smaller stocks may well hold even greater upside under the favorable conditions that we expect. Selloffs may well prove to have been excessive in some cases. The timing of telecom system upgrades could provide a boost to profits and encourage investments to increase. If so, the telecom networking industry could be one of the best performing during this year and over the long term timeframes.

The article How Telecom Equipment Stocks Can Bolster you Portfolio originally appeared on Fool.com and is written by Damon Churchwell.

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