Zacks Industry Outlook Highlights Motorola Solutions, Ubiquiti and InterDigital

For Immediate ReleaseChicago, IL – October 17, 2025 – Today, Zacks Equity Research discusses Motorola Solutions, Inc. MSI, Ubiquiti Inc. UI and InterDigital Inc. IDCC.Industry: WirelessLink: https://www.zacks.com/commentary/2769996/3-wireless-stocks-set-to-ride-on-solid-5g-cloud-fiber-adoptionThe Zacks Wireless Equipment industry is expected to benefit from healthy demand trends driven by increasing adoption of 5G technology and seamless transition to cloud and fiber network infrastructure. However, large-scale investments in network infrastructure upgrades, margin erosion due to price wars, higher customer inventory levels, inflated raw material costs resulting from macroeconomic challenges, geopolitical conflicts and tariff-war-induced uncertain business conditions may erode profitability.Nevertheless, Motorola Solutions, Inc., Ubiquiti Inc. and InterDigital Inc. are likely to profit from solid growth dynamics, owing to the widespread proliferation of IoT, continued fiber densification and a shift to cloud services.Industry DescriptionThe Zacks Wireless Equipment industry primarily comprises companies offering various networking solutions, wireless telecom products and related services for wireless voice, and data communications through scalable modular platforms. Their product portfolio encompasses integrated circuit devices (chips) and system software for wireless voice and data communications, analog and digital two-way radio, satellite telecommunications, wireless networking and signal processing and end-to-end enterprise mobility solutions.The firms also provide a broad range of routing, switching and security products, video surveillance and machine-to-machine communication components that secure VPN appliances, enable intrusion detection and thwart data theft. Some firms even provide electronic warfare, avionics, robotics, advanced communications and maritime systems to the defense industry.What's Shaping the Future of the Wireless Equipment Industry?Comprehensive Service Bouquet: The majority of the industry participants offer mission-critical communication infrastructure, devices, accessories, software and services that enable their customers to run businesses with increased efficiency and safety for their mobile workforce. The comprehensive suite of services ensures continuity and reduces risks for constant critical communication operations. As both consumers and enterprises use the network, there is tremendous demand for quality networking equipment.5G, Fiber & Cloud Networking in Vogue: A faster pace of 5G deployment is expected to augment the telecommunications industry's scalability, security and universal mobility and propel the wide proliferation of IoT. Expansion of fiber optic networks to support 4G LTE and 5G wireless standards, as well as wireline connections, is likely to act as a tailwind.The industry participants are enabling their customers to move away from an economy-of-scale network operating model to demand-driven operations and seamlessly migrate to 5G by offering easy programmability and flexible automation through steady infrastructure investments. The exponential growth of cloud networking solutions is further resulting in increased storage and computing on a virtual plane.Short-Term Profitability Compromised: Although higher infrastructure investments will eventually help minimize service delivery costs to support broadband competition and wireless densification, short-term profitability has largely been compromised. Margins are likely to be affected by the high cost of first-generation 5G products, profitability challenges in China, the prolonged Russia-Ukraine war and Middle East tensions.Uncertainty regarding chip shortage (albeit to a lesser extent) and supply-chain disruptions owing to tariff wars (leading to a dearth of essential fiber materials), shipping delays and scarcity of other raw materials due to geopolitical unrest are expected to affect the expansion and rollout of new broadband networks. Extended lead times for basic components might also hurt the delivery schedule and escalate production costs. High customer inventory levels, owing to a challenging macroeconomic environment and intense market volatility due to higher tariffs, pose another headwind for the companies.Network Convergence: With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, the industry is increasingly developing solutions to support wireline and wireless network convergence. These investments are likely to help minimize service delivery costs to adequately support broadband competition and expand rural coverage and wireless densification in the long run.The industry players have enabled enterprises to rapidly scale communications functionalities to a vast range of applications and devices with easy-to-use software application programming interfaces. The firms support high user volumes without affecting deliverability and cost-effectively eliminate performance degradation.Zacks Industry Rank Indicates Bullish TrendsThe Zacks Wireless Equipment industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #20, which places it in the top 8% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Before we present a few wireless equipment stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s recent stock-market performance and valuation picture.Industry Outperforms S&P 500, SectorThe Zacks Wireless Equipment industry has outperformed the S&P 500 composite and the broader Zacks Computer and Technology sector over the past year.The industry has surged 44.2% over this period compared with the S&P 500 and sector’s growth of 15.9% and 26.6%, respectively.Industry's Current ValuationOn the basis of trailing 12-month Enterprise Value-to-EBITDA (EV/EBITDA), which is the most appropriate multiple for valuing telecom stocks, the industry is currently trading at 37.1X compared with the S&P 500’s 18.41X. It is also trading above the sector’s trailing 12-month EV/EBITDA of 19.32X.Over the past five years, the industry has traded as high as 37.1X, as low as 6.47X and at the median of 14.62X.3 Wireless Equipment Stocks to BuyMotorola: Based in Chicago, IL, Motorola is a leading communications equipment manufacturer with a strong market position in bar code scanning, wireless infrastructure gear and government communications. As a leading provider of mission-critical communication products and services worldwide, the company has ensured a steady revenue stream from this niche market. It intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.Motorola is witnessing a robust demand for video security products and services and remains well poised to maintain this growth momentum with a diversified portfolio. The Zacks Consensus Estimate for its current fiscal and next fiscal earnings has been revised 4.3% and 3% upward, respectively, since October 2024. This Zacks Rank #2 (Buy) stock has a long-term earnings growth expectation of 9.1%.Ubiquiti: Headquartered in New York, Ubiquiti offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company maintains a proprietary network communication platform committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information.Ubiquiti aims to benefit from significant growth opportunities in both emerging and developed economies. These include a relentless pursuit by emerging countries to stay connected with the world through the adoption of wireless networking infrastructure, as developed economies aim to bridge the demand-supply gap for higher bandwidth.The stock has gained 202% over the past year. The Zacks Consensus Estimate for its current fiscal and next fiscal earnings has been revised 60.2% and 54.2% upward, respectively, since October 2024. Ubiquiti sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.InterDigital: Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions for digital cellular and wireless products and networks. IDCC’s global footprint, diversified product portfolio and ability to penetrate different markets are impressive.Apart from the company’s strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive significant value, considering the massive size of the market it licenses. Furthermore, the company remains committed to pursuing acquisitions to drive its product portfolio and boost organic growth.This Zacks Rank #1 stock has gained 132.5% over the past year. The stock has a long-term earnings growth expectation of 15% and delivered a trailing four-quarter earnings surprise of 54.3%, on average. The Zacks Consensus Estimate for its current fiscal and next earnings has been revised 178.1% and 66.2% upward, respectively, since October 2024.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Motorola Solutions, Inc. (MSI): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks