Unisys Hits A 52-Week High On Core Focus & Restructuring
Zacks Investment Research | Nov 17, 2016 08:32PM ET
Shares of Unisys Corporation (NYSE:UIS) hit a 52-week high of $13.93 on Nov 17, closing a notch lower at $13.85, reflecting a healthy year-to-date return of 25.3%. Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has the fundamentals to scale higher.
Growth Drivers
The information technology industry is presently undergoing a transition, forging new disruptive trends in cloud mobility, big data, social computing and increasing awareness of cyber security. In order to capitalize on the trend, Unisys is rationalizing its services and solution portfolio by shifting its offerings to cloud-based and software-as-a-service delivery models. The company is focusing on business opportunities in fewer, more profitable sectors in the IT marketplace.
To drive growth, Unisys is diverting its resources and investments toward four targeted, high-potential market areas, including security (IT security and physical security); data center transformation and outsourcing services; end-user outsourcing and support services; and applications modernization and outsourcing services. As it seeks to keep up with the evolution in the IT industry, the company’s services unit looks to advantage from the growth prospects in higher-margin services. The company has also secured quite a few contracts in these segments that should propel top-line growth in the coming quarters.
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