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Chicago, Illinois-based Motorola Solutions, Inc. (MSI) offers services and solutions to public safety programs, government sectors, large corporations, and wireless infrastructure service providers. With a market cap of $78.5 billion, the company develops and integrates security and safety technology.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MSI fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the communication equipment industry. MSI remains a top player in consumer electronics, due to its strong reputation for delivering high-quality and durable communication equipment to lead the market. It makes significant R&D investments to keep on top of technological developments and satisfy its customers' changing needs.
Despite its notable strength, MSI slipped 7.8% from its 52-week high of $507.82, achieved on Nov. 11. Over the past three months, MSI stock gained 6.9%, underperforming the Nasdaq Composite’s ($NASX) 13.3% gains during the same time frame.
Nevertheless, in the longer term, shares of MSI rose 50.1% on a YTD basis and climbed 42.9% over the past 52 weeks, outperforming NASX’s YTD gains of 32.6% and 37% returns over the last year.
To confirm the bullish trend, MSI has traded above its 50-day and 200-day moving averages since last year.
MSI's success is driven by its focus on public safety needs and innovative communication solutions, strengthened by its integration with Scottish Fire and Rescue services. It anticipates continued growth in land-mobile radio services, command center software, and video surveillance. Moreover, shares of Motorola Solutions climbed 7.4% following its Q3 earnings release on Nov. 7 due to its strong financial performance, which beat analysts' expectations. The company reported revenue of $2.8 billion and adjusted EPS of $3.74, both exceeding forecasts, driven by robust demand for its security-focused products. Furthermore, Motorola raised its full-year revenue growth forecast to 8.3% and adjusted EPS guidance to $13.63–$13.68.
MSI’s rival, QUALCOMM Incorporated (QCOM) shares lagged behind the stock, with a 9.4% uptick on a YTD basis and 15.8% returns over the past 52 weeks.
Due to MSI's strong price action, Wall Street analysts are bullish about the stock’s prospects. The stock has a consensus “Strong Buy” rating from the 12 analysts covering it, and the mean price target of $519.33 suggests a potential upside of 10.5% from current price levels.
