Advertisement
New Zealand markets closed
  • NZX 50

    11,682.39
    -89.42 (-0.76%)
     
  • NZD/USD

    0.6120
    -0.0001 (-0.02%)
     
  • NZD/EUR

    0.5717
    +0.0003 (+0.06%)
     
  • ALL ORDS

    8,039.90
    +27.80 (+0.35%)
     
  • ASX 200

    7,796.00
    +26.60 (+0.34%)
     
  • OIL

    80.59
    -0.70 (-0.86%)
     
  • GOLD

    2,334.70
    -34.30 (-1.45%)
     
  • NASDAQ

    19,700.43
    -51.87 (-0.26%)
     
  • FTSE

    8,237.72
    -34.74 (-0.42%)
     
  • Dow Jones

    39,150.33
    +15.57 (+0.04%)
     
  • DAX

    18,163.52
    -90.66 (-0.50%)
     
  • Hang Seng

    18,028.52
    -306.80 (-1.67%)
     
  • NIKKEI 225

    38,596.47
    -36.55 (-0.09%)
     
  • NZD/JPY

    97.7750
    +0.5550 (+0.57%)
     

Nokia (NOK) Acquires Fenix Group to Boost Prospect in Defense

Nokia Corporation NOK recently closed the acquisition of Fenix Group, a prominent provider of tactical communication products. Fenix is well known for its 3GPP-compliant defense communication solution suite. The deal, which was announced in December 2023, is a strategic move from Nokia to bolster its commercial prospects in the U.S. defense sector.

Nokia’s current product offerings complement Fenix’s expertise in broadband tactical communications. Integration of Fenix’s products, including the industry-leading Banshee family and Talon MANET radios, will strengthen Nokia’s portfolio, enabling it to offer an extensive suite of 3GPP-based solutions to its defense clients.

In October 2021, the Defense Innovation Unit selected Nokia and Fenix for a mission to deploy ad hoc tactical private wireless communications. The recent approval from the Committee on Foreign Investment in the United States accentuates Nokia’s commitment as a trusted provider of secure and innovative solutions to the U.S. Federal government.

For advanced defense communication, interoperable 3GPP-based mobile networks are crucial. The technology facilitates seamless compatibility among various systems and efficiently executes data-intensive operations by matching the high bandwidth and low latency requirements for advanced applications. This significantly enhances cooperation and decision-making during critical situations. The pace of defense modernization is increasing in the United States and other nations due to rising geopolitical volatility. By incorporating Fenix’s advanced capabilities, Nokia is aiming to capitalize on this evolving market trend by offering high-performance, secure and reliable solutions for mission-critical objectives.

Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast. It is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, it is transforming the way people and things communicate and connect.

The company aims to create new business and licensing opportunities in the consumer ecosystem. NOK enables customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation required to support dynamic operations, reduce complexity and improve efficiency. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.

The stock has gained 0.2% in the past year compared with the industry’s growth of 53.9%

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Key Picks

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

NVIDIA Corporation NVDA, sporting a Zacks Rank #1 (Strong Buy) at present, delivered a trailing four-quarter earnings surprise of 18.43%, on average. In the last reported quarter, it delivered an earnings surprise of 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.

Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.68% and delivered an earnings surprise of 15.39%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Silicon Motion Technology Corporation SIMO, sporting a Zacks Rank #1 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.

It is a leading developer of microcontroller ICs for NAND flash storage devices. The semiconductor company also designs, develops and markets high-performance, low-power semiconductor solutions for original equipment manufacturers and other customers.

ADVERTISEMENT

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Nokia Corporation (NOK) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research