CommScope Holding Company, Inc. COMM recently announced that it has joined forces with the National Content & Technology Cooperative (“NCTC”) to support independent service providers and expand broadband access in remote areas across the United States. NCTC supports independent broadband and TV communication service providers, offering services to small and mid-size communities. Access to high-quality network infrastructure is often out of reach of these service providers. By partnering with enterprises like CommScope, NCTC bridges that technology gap, mitigates complexities and empowers its members with easier access to cutting-edge network solutions.

Limited broadband access is still a major issue in rural areas across the United States. In today’s digital world, lack of connectivity undermines access to critical services such as healthcare, education and banking. It also creates a competitive disadvantage for businesses operating in remote locations. Recognizing the issue, the U.S. Government has initiated the Broadband Equity Access and Deployment (“BEAD”) program to provide funding for broadband expansion and reduce the digital divide.

Per the agreement, COMM will offer its Build America, Buy America compliant portfolio and also assist NCTC to secure funding under the BEAD program. COMM has a comprehensive product suite that includes infrastructure solutions, including wireless and fiber optic solutions, for the core access and edge layers of communication networks. The solutions effectively help customers scale network capacity, deliver better network-response time and performance and simplify technology migration. Access to such innovative product offerings will significantly support independent service provider’s FTTH network deployment initiatives in rural and underserved areas.

Will This Venture Drive COMM’s Growth?

NCTC and CommScope have decades-long business relationship. The current venture will further solidify their collaboration and accentuate COMM’s commitment to extending network connectivity in remote locations across the country. NCTC has a strong presence across all 50 U.S. states and territories, serving one-third of all households in the country. The recent partnership with NCTC will expand COMM’s market reach throughout the country. This bodes well for long-term growth.

However, inventory adjustments, macroeconomic challenges and weak demand in the Intelligent Cellular, Security Solutions and Access Network Solutions segment are major headwinds.

COMM Stock’s Price Movement

Shares of CommScope have gained 153.4% in the past year compared with the industry’s growth of 44.8%.

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COMM’s Zacks Rank and Key Picks

CommScope currently carries a Zacks Rank #5 (Strong Sell).

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

Keysight Technologies, Inc. KEYS has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.

InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 158.41%, in the trailing four quarters.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Zillow Group, Inc. ZG carries a Zacks Rank #2 at present. ZG delivered an earnings surprise of 7.07%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor.

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InterDigital, Inc. (IDCC) : Free Stock Analysis Report

CommScope Holding Company, Inc. (COMM) : Free Stock Analysis Report

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Zillow Group, Inc. (ZG) : Free Stock Analysis Report

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