Earnings estimates for this telecom company have jumped by 45 cents in the past few months.
Arris Group (ARRS)
from Cabot Market Letter
After years of little innovation, the cable and telco TV providers have embarked on a spending spree to boost bandwidth, enabling more innovative services, faster Internet connections and more. The big beneficiary of that is Arris Group (ARRS), which has always done a good business in set-top boxes, routers, gateways and the like, but whose purchase of Motorola Home last year has transformed it into the go-to provider of the next-generation products that all TV providers are craving.
The stock broke out in November from a five-year base, ran into February and then formed a normal launching pad. And now ARRS is one of the first growth stocks to lift into new high ground! We think it’s buyable around here; a drop back below 28 would be negative.
Michael Cintolo, Cabot Market Letter, www.cabot.net, 978-745-5532, May 28, 2014