Yahoo Finance Ericsson (ERIC) to Boost 5G Capabilities in Rural Kansas
Ericsson ERIC recently inked a contract with Nex-Tech Wireless for an undisclosed amount to augment 5G network connectivity in the rural markets of Kansas. The deal is in sync with President Biden’s initiative to offer broadband access to all Americans by enabling carriers to expand networks in rural areas that lack high-quality Internet service.
Nex-Tech offers data and mobile services across 40 central and western Kansas counties. The carrier has long-term business relationship with Ericsson, with the latter serving as its primary vendor for 4G deployment. This premier wireless services provider currently aims to leverage Ericsson Radio Access Network (RAN) solutions for improved 5G connectivity.
Ericsson radio solutions will enable Nex-Tech to offer high-speed 5G capabilities in the rural communities of Kansas and help bridge the digital divide. This, in turn, will likely ensure low latency, high bandwidth services for superfast data transfer.
Ericsson Radio System comprises hardware, software and services for radio, RAN Compute, antenna system, transport, power and site solutions. It enables smooth and cost-effective migration from 4G to 5G, aiding communication service providers to launch the avant-garde technology and grow 5G coverage fast. The company’s 5G radio access technologies provide the infrastructure required to meet the growing demand for high-bandwidth connections and support real-time, high-reliability communication requirements of mission-critical applications.
The company is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership. It believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson expects mainstream 4G offerings to give way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence. Ericsson currently has 168 commercial 5G agreements with communications service providers (of which 88 are publicly announced) and includes 105 live 5G networks across the globe.
The stock has lost 15.2% over the past year against the industry’s rise of 17.1%. Nevertheless, we remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
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A better-ranked stock in the industry is Clearfield, Inc. CLFD, sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearfield delivered an earnings surprise of 50.8%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 162.1%.
Qualcomm Incorporated QCOM, carrying a Zacks Rank #2, is another solid pick for investors. It has a long-term earnings growth expectation of 15.3% and delivered an earnings surprise of 11.2%, on average, in the trailing four quarters.
Earnings estimates for the current year for the stock have moved up 35.4% over the past year. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks for digital transformation in the cloud economy.
Sierra Wireless, Inc. SWIR carries a Zacks Rank #2. It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 18.9%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
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