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ADTN to Launch Cutting-edge Networking Solutions: Stock to Gain?

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ADTRAN, Inc. (ADTN - Free Report) recently announced plans to showcase its Coherent 100ZR QSFP28 pluggable module and state-of-the-art FSP 3000 open optical line system (OLS) at the European Conference on Optical Communication. 

Given the vast number of links to be upgraded and the cost points of the optical edge, operators need a cost-efficient solution that can be easily deployed without significant changes to existing infrastructure. The standards-compliant design of the coherent 100ZR is expected to facilitate multi-vendor interoperability for 100Gbit/s transmission over distances up to 300km, while the FSP 3000 OLS, equipped with integrated monitoring and diagnostic functions, simplify the management and optimization of transmission performance.

By integrating the FSP 3000 OLS with 100ZR and 400Gbit/s OpenZR+ transceivers from various vendors, including the coherent 100ZR QSFP28, ADTRAN aims to promote open and disaggregated networking. Additionally, ADTRAN intends to feature other coherent pluggable transceivers ranging from 100Gbit/s to 800Gbit/s that incorporate diverse OLS technologies from multiple vendors. This approach is set to offer operators a cost-effective and low-power solution aimed at enhancing data center interconnect networks (DCI) and cloud infrastructure.

Will the Product Launches Drive ADTN’s Stock Performance?

ADTRAN has a long history as a pioneer in the DCI sector, enabling enterprises and cloud providers to establish high-capacity, high-performance networks. The company’s solutions are designed to operate within an open environment, fostering innovation and seamless interoperability with other vendors. This large-scale demonstration is poised to position it at the forefront of promoting open, multi-vendor interoperability for data center applications. 

These advancements are expected to generate incremental demands for its solutions, leading to higher revenues. Improving financial performance is likely to propel the stock upward.

ADTN’s Stock Price Performance

Shares of ADTRAN have lost 31.5% over the past year against the industry’s growth of 63%.

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ADTN’s Zacks Rank and Key Picks

ADTRAN currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. The company offers a comprehensive suite of networking products and solutions for service providers and enterprises. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.

Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. 

Airgain, Inc. (AIRG - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.

Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.


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