Ericsson ERIC recently unveiled its new Compact Packet Core, a powerful cloud-native network solution that brings significant advancements for Communications Service Providers (CSPs).
Major Takeaways From ERIC’s New Solution
The state-of-the-art Compact Packet Core integrates the Packet Core Controller and Packet Core Gateway network functions into a compact, one-rack version of Ericsson’s Cloud-Native Infrastructure Solution. It fully supports 4G, 5G non-standalone and 5G Standalone networks, providing operators with the essential capabilities to meet strategic and operational needs. With pre-configured parameters and streamlined migration paths, it significantly reduces the complexity associated with cloud-native adoption, maximizing the return on investment by ensuring that CSPs can quickly take advantage of the latest technologies.
The solution provides CSPs with the flexibility to adapt their networks to new use cases and workloads, supporting key cloud-native features like automation, In-Service Software Upgrades and Container-as-a-Service rolling upgrades. These capabilities will likely allow CSPs to efficiently manage and grow their networks as their customer base expands while maintaining operational efficiency.
Another notable feature of the Compact Packet Core is its lifecycle management service, where Ericsson handles automated network upgrades. This service ensures that the network remains up-to-date with the latest software innovations and security improvements, providing seamless upgrades and smooth migration processes for subscribers to cloud-native environments.
Moreover, with pre-configured deployments, the Compact Packet Core reduces the complexity of migrating legacy systems, making it easier for CSPs to deploy, upgrade and manage their packet core network functions. The solution significantly reduces the need for manual configuration, with 80% fewer parameters to adjust. Additionally, the Compact Packet Core’s efficient design helps reduce energy consumption and hardware footprint by up to 30%, taking advantage of the latest CPU advancements.
Will Strong Portfolio Boost ERIC’s Prospects?
With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased recently. Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G.
Ericsson's innovative solutions reshape connectivity across sectors, from enhancing network visibility through advanced 5G deployments to revolutionizing industries with robust IoT innovations. The launch of this Compact Packet Core simplifies the company’s journey to cloud-native and 5G Core technologies, providing CSPs with a flexible, efficient and scalable solution that supports capacity growth and the evolution of services in an increasingly digital world.
These advancements are expected to generate incremental demand for Ericsson’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.
ERIC’s Stock Price Performance
Shares of Ericsson have gained 49% over the past year compared with the industry’s growth of 41.3%.
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ERIC’s Zacks Rank and Other Key Picks
Ericsson currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader industry have been discussed below.
Celestica Inc. CLS sports a Zacks Rank #1 (Strong Buy) at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 10.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.
Ubiquiti Inc. UI sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Ericsson (ERIC) : Free Stock Analysis Report
Celestica, Inc. (CLS) : Free Stock Analysis Report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Ubiquiti Inc. (UI) : Free Stock Analysis Report
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