In the fast-paced world of technology investing, it is easy for certain companies to get lost in the shuffle. While names like Nvidia, Alphabet, and Microsoft dominate the headlines, there is one stock that has been quietly performing well under the radar – Motorola Solutions. This telecommunications company, often associated with its legacy phone business, is actually much more than meets the eye.
According to Trent Masters, portfolio manager at Alphinity Investment Management, Motorola Solutions is a “very beautiful, solid, public safety-focused business.” While many may still associate the company with phones, Masters points out that the majority of Motorola’s business is dedicated to Land Mobile Radio (LMR), which provides communication devices for first responders. Additionally, the company’s video security and building command center units are gaining traction in the market.
Despite not being a pure play in artificial intelligence like Nvidia or Microsoft, Masters believes that there are opportunities for Motorola Solutions to use AI to augment growth. For example, AI could be utilized in the company’s video security solutions to identify potential threats such as individuals carrying weapons. This shows that there is room for innovation and expansion within the company.
Motorola’s stock performance has been impressive, with shares up over 18% year to date and over 30% over the last 12 months. While the average price target on the stock is $376.38, some analysts believe there is slightly downside potential. However, of the 15 analysts covering the stock, nine give it a buy or overweight rating, indicating confidence in the company’s future growth.
Motorola Solutions is a company that is often overlooked in the tech industry but has a strong foundation in public safety-focused businesses. With a growing LMR business, expanding video security solutions, and the potential to use AI for further growth, the company presents an interesting investment opportunity for those looking to diversify their tech holdings. Keep an eye on Motorola Solutions as it continues to evolve and innovate in the ever-changing tech landscape.
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