The tech industry is constantly evolving, with new opportunities for investment arising every day. While companies like Nvidia, Alphabet, and Microsoft are frequently in the spotlight, there is one stock that has been quietly making waves in the market – Motorola Solutions. According to Trent Masters, portfolio manager at Alphinity Investment Management, Motorola Solutions is a hidden gem that investors may be overlooking. In a recent interview, Masters highlighted the company’s strong focus on public safety and its diverse range of offerings.
Contrary to popular belief, Motorola Solutions is not just a mobile phone company. In fact, the majority of its business is dedicated to Land Mobile Radio (LMR) – the walkie talkies used by first responders. Additionally, the company has expanded into video security and building command center units, further solidifying its position in the public safety sector. Masters emphasized that Motorola Solutions’ focus on public safety gives it a unique advantage, as this is an area where government spending remains consistent, regardless of market conditions.
Masters is bullish on Motorola Solutions for several reasons. He pointed out that the company’s LMR business is currently undergoing an upgrade cycle, which is driving sales of new devices at higher prices. Furthermore, the video security and command center units are gaining traction in the market, providing additional growth opportunities for the company. This combination of factors makes Motorola Solutions a compelling investment choice, with a strong track record of delivering results.
While AI is not a primary driver for Motorola Solutions, Masters acknowledged that there are opportunities for the company to leverage AI to enhance its offerings. One potential use case highlighted by Masters is in the video security solutions, where AI could be used to identify potential threats, such as individuals carrying weapons. By incorporating AI into its products, Motorola Solutions can stay ahead of the competition and provide innovative solutions to its customers.
Motorola Solutions’ stock has been performing well, with shares up over 18% year to date and over 30% over the last 12 months. Analysts have also shown confidence in the company, with nine out of 15 analysts giving it a buy or overweight rating. The average price target on the stock is $376.38, indicating some potential upside for investors. Despite the positive outlook, there are some analysts who have a hold rating on the stock, suggesting that there may be factors to consider before making an investment decision.
Motorola Solutions presents an intriguing investment opportunity in the tech industry, with a strong focus on public safety and a diverse range of offerings. While the company may not be a pure play in AI like Nvidia or Microsoft, it has the potential to leverage AI to drive growth and innovation. With its solid track record and positive stock performance, Motorola Solutions is worth considering for investors looking to diversify their portfolio in the tech sector.
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