Here's Why You Should Retain ARRIS (ARRS) Stock For Now
Zacks Investment Research | Sep 24, 2017 11:09PM ET
ARRIS International Plc (NASDAQ:ARRS) has an impressive earnings history having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, with an average beat of 6.3%. Also, the company is expected to perform well on the bottom-line front in the third quarter of 2017 driven by a strong product portfolio. The company expects earnings (adjusted) between 66 cents and 71 cents in the same period.
Additionally, the Zacks Consensus Estimate for full-year 2017 has been revised upward approximately 2% in the last 60 days.
The company’s recent deals to broaden product portfolio are also impressive. Earlier in February, ARRIS had entered into a deal with Broadcom (NASDAQ:AVGO) to purchase Brocade Communication’s Ruckus Wireless and ICX Switch units. The deal is expected to close by this year-end.
We are also encouraged by the company’s efforts to reward shareholders through buybacks. ARRIS has bought back 4.9 million shares for $127 million so far this year.
ARRIS’ trailing 12-month return on equity (ROE) supports growth potential. Not only has the company’s ROE of 14% remained roughly steady over the last year, it compares favorably with its industry’s ROE of 11%.
In view of the above positives, we believe investors should currently hold on to the ARRIS stock.
ARRIS International PLC Price and Consensus
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.