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Here's Why ADTRAN (ADTN) is an Appealing Choice for Investors

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Shares of ADTRAN, Inc. (ADTN - Free Report) have gained 56.1% in the past six months compared with 16.3% growth of the industry. The stock currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B.



This Huntsville, AL-based company delivered a trailing four-quarter earnings surprise of 184.2%, on average. The Zacks Consensus Estimate for its current-year earnings has been revised 30% upward over the past 30 days.

Growth Drivers

ADTRAN is a leading provider of multi-gigabit fiber and fiber extension broadband access solutions. It leads in the development of open, programmable networks.

The company is focused on being a top global supplier of access infrastructure and value-added solutions from the cloud edge to the subscriber edge. ADTRAN’s products facilitate customers with the transition to a highly automated and cloud-controlled network.

The company is benefiting from a significant increase in demand for its network solutions. ADTRAN’s business is driven by robust demand for its fiber access platforms, in-home service delivery platforms and software platforms with regional service providers across the United States and Europe.

ADTRAN offers an advanced ecosystem of turnkey network implementation, maintenance, professional, managed and cloud services. Its end-to-end solutions simplify the deployment of fiber-based broadband services and help provide an enhanced subscriber experience.

The company expects solid traction in its domestic markets for ultra-broadband and fiber-to-the-home solutions, along with software-defined access and Ethernet passive optical network solutions. Its leadership in software-defined access is likely to ensure a steady stream of revenues as it helps clients reduce costs and accelerate service delivery.

ADTRAN’s strategy of diversification across geographies and markets is noteworthy. We believe that the stock has more upside left.

Other Solid Picks

Some other top-ranked stocks that investors may consider are Cambium Networks Corporation (CMBM - Free Report) , United States Cellular Corporation (USM - Free Report) and Vicor Corporation (VICR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cambium delivered a trailing four-quarter earnings surprise of 46.5%, on average.

U.S. Cellular delivered a trailing four-quarter earnings surprise of 123.9%, on average.

Vicor delivered a trailing four-quarter earnings surprise of 80.6%, on average.

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