Time New York: Fri 19 Oct 10:31 am  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Zayo’s Infrastructure Solution Chosen by Multinational Bank

Zacks

Zayo Group Holdings, Inc. ZAYO has been selected by an unnamed U.S. based multinational bank to offer an integrated infrastructure solution. Comprising colocation, dark fiber as well as wavelengths, the solution will enable the bank to upgrade its national infrastructure.

Notably, the colocation solution of the company at its zColo data center, located in the western United States will provide the interconnection services to the customer. Also, the solution includes dark fiber from the company’s data center to the core data centers of the bank. Moreover, it includes a high-capacity wavelength solution, which will be deployed to offer a long-haul connectivity between nine markets across the country.

Existing Business Scenario

Zayo's extensive network footprint, diversified product portfolio and the ability to penetrate in different markets are commendable. The company continues to extend global reach by expanding its fiber footprint and forging strategic partnerships with local providers. It has been experiencing broad-based demand across all the customer verticals, which is likely to continue, going forward. Also, the company remains bullish about additional E-Rate opportunities in the upcoming quarters and is well poised to benefit from the growing need for cloud adoption and high-performance bandwidth throughout the world.


Moreover, Zayo focuses on realigning its business to drive efficiency and improve its operating metrics. Notably, in fourth-quarter fiscal 2018, the company moved its Ethernet Transport business from the Enterprise into the Transport segment. The realignment is expected to align all point-to-point private network solutions within a single segment.

In the past six months, shares of this Zacks Rank #3 (Hold) company has lost 7.4%, narrower than the industry’s decline of 12.4%.

However, given the company’s international presence, its business is exposed to macroeconomic risks. Also, rising cost of goods sold has been a major concern for Zayo over the past several years.

Key Picks

Some better-ranked stocks in the industry are Ciena Corp. CIEN, Avnet, Inc. AVT and CenturyLink, Inc. CTL. While Ciena sports a Zacks Rank #1 (Strong Buy), Avnet and CenturyLink carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ciena surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 7.70%.

Avnet outpaced estimates in each of the preceding four quarters, with an average earnings surprise of 5.92%.

CenturyLink exceeded estimates twice in the preceding four quarters, with an average positive earnings surprise of 13.72%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


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

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.