Nokia (NOK) Solution to Enhance CANARIE's Network Capabilities

·4 min read

Nokia Corporation NOK recently announced that CANARIE selected its 7750-service router to upgrade network capabilities and support researchers and educators with better connectivity. The contract for undisclosed amount is likely to strengthen Nokia’s position as a leading telecommunications equipment manufacturer across the globe.

CANARIE supports researchers from various subjects in collecting a large amount of data through sensors, detectors and telescopes. The whole procedure needs to be very precise and streamlined. The researchers also need to have real-time network connectivity, which will allow seamless collaboration and swift transmission of a large amount of data whenever required to ensure optimum coordination in the team.

Nokia’s 7750 router matches these requirements as it can transfer about 30 terabytes of data within 10 minutes. The 7750-service router is optimized to deliver greater flexibility and scalability. Along with this significant capacity enhancement, it also automates the network and ensures greater security and durability. This will immensely boost the productivity of CANARIE’s 34,000 km network infrastructure, enhance cooperation among 100 NREN (National Research and Education Networks) around the globe and support critical research related to medicine, climate and cybersecurity.

Nokia enables its customers to move away from an economy-of-scale network operating model to demand-driven operations through easy programmability and flexible automation to support dynamic operations, reduce complexity and improve efficiency. The company seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets. It is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. Its installed base of high-capacity AirScale products, which enable customers to upgrade to 5G quickly, is growing fast.

It has made significant progress on its three-phased journey of value creation. The company’s strategy includes Reset, Accelerate and Scale. Its focus on capital allocation and technology leadership is expected to help it grow profitably. Nokia is on track to achieve sustainable, profitable growth and technology leadership. The company is witnessing healthy momentum in its focus areas of software and enterprise, which augurs well for the licensing business. It is poised to benefit from copper and fiber deployments of passive optical networking.

The stock has declined 14.3% in the past year compared with the industry’s fall of 18.4%.

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

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ubiquiti, Inc. UI, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 6.90%, in last reported quarter. Earnings estimates for UI for the current year stand at $7.31 per share. Ubiquiti and its subsidiaries offer a comprehensive portfolio of networking products and solutions for service providers and enterprises. Its service-provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing; while enterprise product platforms provide wireless local area network (WLAN) infrastructure, video surveillance products and machine-to-machine communication components.

The company’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. Its operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community).

Arista Networks, Inc. ANET, sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

It continues 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. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.

Splunk Inc. SPLK, sporting a Zacks Rank #1, delivered an earnings surprise of 131.1%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 83.78%. Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company's offerings enable users to investigate, monitor, analyze and act on machine data and big data, irrespective of format or source and help in operational decision-making.

Its software has a broad range of applications, including security analytics, business analytics and IT operations. Splunk is benefiting from healthy customer engagement, evident from the consistently high net retention and competitive win rates alongside solid momentum with large orders overall.

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