Back to top

Image: Bigstock

Will NOK Stock Benefit From the Expansion of Wi-Fi 7 Portfolio?

Read MoreHide Full Article

Nokia Corporation (NOK - Free Report) recently expanded its Wi-Fi 7 portfolio with the launch of a cutting-edge Wi-Fi 7 gateway aimed at enhancing mesh networking capabilities for service providers. This tri-band device, dubbed Beacon 19, is set to deliver an impressive capacity of up to 19Gbps, addressing the growing demands of streaming, online gaming, smart home technologies and security applications within the home environment.

How NOK’s Launch Could be Beneficial to Operators?

With the rapid adoption of XGS-PON and the emergence of 25G PON services, upgrading Wi-Fi infrastructure is becoming essential for delivering premium gigabit and multi-gigabit speeds directly into homes. Nokia’s newly introduced Beacon 19 gateway is specifically engineered to meet this need, enabling service providers to offer a top-tier Wi-Fi 7 experience. By leveraging Wi-Fi 7's advanced features, including its three radio bands, the device is expected to significantly reduce network congestion, minimizing slowdowns and buffering.

At the heart of Beacon 19 is Nokia’s Corteca software, which enables comprehensive management from the device to the cloud. Built on open industry standards, including TR-369 and EasyMesh, Corteca provides cutting-edge Wi-Fi and device management capabilities. It also offers a marketplace for third-party applications that can run on various gateway types, including fiber gateways, fixed wireless access gateways and mesh Wi-Fi systems.

Another key feature of the Beacon 19 is its support for multi-link operations. This will likely allow devices to simultaneously send and receive data across various frequency bands and channels, resulting in faster connection speeds.

Will Strong Portfolio Aid NOK’s Prospects?

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization.

Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. It currently has 319 commercial 5G deals with communications service providers globally. The 5G portfolio is increasingly gaining traction among enterprise customers. The launch of the Beacon 19 signifies a pivotal advancement for the company in home connectivity as it aims to ensure that multi-gigabit speeds reach every corner of the house.

Additionally, its synergy with Corteca software, along with built-in TR-369 support for management and an open framework, will likely streamline the optimization of Wi-Fi services for providers. This enhancement is anticipated to improve service offerings, ultimately delivering a fast, reliable and seamless broadband experience for users.

This enhancement is likely to enable the company to generate higher revenues in the upcoming quarters. An improved financial performance is likely to propel the stock upward.

NOK’s Stock Price Performance

Shares of Nokia have gained 19.6% over the past year compared with the industry’s growth of 52.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

NOK’s Zacks Rank and Key Picks

Nokia currently carries a Zacks Rank #3 (Hold).

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) sports a Zacks Rank #1 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 (Buy). 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nokia Corporation (NOK) - free report >>

Workday, Inc. (WDAY) - free report >>

Airgain, Inc. (AIRG) - free report >>

Ubiquiti Inc. (UI) - free report >>

Published in