Zayo (ZAYO) Hits 52-Week High On Healthy Growth Dynamics
Zacks Investment Research | Jan 02, 2020 08:02PM ET
Shares of Zayo Group Holdings, Inc. (NYSE:ZAYO) scaled a new 52-week high of $34.71 during yesterday’s trading session, before closing a tad lower at $34.69. The stock has the potential for further price appreciation and looks poised to touch new highs in 2020 on the back of healthy growth dynamics.
Growth Drivers
Zayo is well poised to benefit from a diversified blue-chip customer base that comprises the largest and most sophisticated users of bandwidth. The company aims to grow the network business at 5% and beyond while controlling expenses to boost OpEx efficiency. Zayo emphasizes on less than 12-month payback deals while opting for strategic investments like e-rate deals, mobile infrastructure and long-haul fiber. Such deals leverage its existing assets in conjunction with new builds. These are likely to deliver strong free cash flow yields and attractive returns on invested capital.
Markedly, Zayo’s multi-site data center portfolio, ability to customize its solutions and capability to connect globally over its network are key growth drivers. The company continues enhancing global reach by expanding its fiber footprint and forging partnerships with local providers. It has been experiencing broad-based demand across all the customer verticals, which should drive its top line.
Management is bullish about the prospects of its largest business segment, Fiber Solutions, as it is witnessing a very strong deal momentum. We also remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) company. Over the past year, the stock has outperformed the Original post
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.