COMM's Robust Portfolio Fuels Revenues: A Sign of More Upside?

CommScope Holding Company, Inc. COMM is benefiting from solid net sales growth driven by its comprehensive, differentiated portfolio offerings. The company has been steadily expanding its portfolio to capitalize on the evolving market dynamics. During the second quarter of 2025, the company recorded $90.9 million in research and development expenses, up from $72.6 million in the year-ago quarter. Its research and innovation initiatives are targeted at high-growth opportunities in fiber optic connectivity for fiber-to-the-x (FTTX) and data centers, Wi-Fi 7 and 6GHz, DOCSIS 4.0, gigabit passive optical network (GPON) and metro cell and small cell wireless solutions.

The company recently announced the worldwide availability of SYSTIMAX Constellation edge-based power and connectivity platform. The solution effectively facilitates deployment of 10G or higher speed fault-managed power networks with reduced cost, space and labor requirements. The leading-edge constellation platform is ideal for use in dense urban environments and also to support growing usage of IoT devices in office buildings. 

COMM also joined forces with Nokia to combine its FLX ODN non-hardened connectorized terminals with Nokia’s Broadband Easy digital automation platform to streamline the fiber deployment process in the Asia Pacific region. It is also collaborating with Comcast to roll out DOCSIS 4.0 amplifiers. CommScope’s growing partner base and strategic collaboration with industry leaders are driving innovation and boosting commercial prospects.

How are Competitors Faring?

CommScope faces competition from Corning Incorporated GLW and Harmonic Inc. HLIT in the communication infrastructure market. Harmonic is benefiting from the growing adoption of DOCSIS 4.0 across industries. Comcast has been collaborating with Harmonic to accelerate network expansion. Mediacom Communication also rolled out DOCSIS 4.0-based services in collaboration with Harmonic. HLIT’s growing traction in this vertical can pose a threat to CommScope’s competitive edge.

Corning boasts a broad portfolio of communication infrastructure products that cater to multiple domains, including fiber broadband, AI data centers and more. Its data center portfolio consists of optical fiber, hardware, cables and connectors, enabling it to create optical solutions to meet evolving customer needs. This augurs well for its long-term growth. In addition, broadband and 5G create near-term momentum. The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver in the Corning' Optical Communication segment.

COMM’s Price Performance, Valuation and Estimates

CommScope’s shares have gained 153% over the past year compared with the industry’s growth of 86.1%.

Going by the price/sales ratio, the company's shares currently trade at 0.6 forward sales, lower than 0.9 for the industry. 

Earnings estimates for 2025 have decreased 0.77% to $1.29 per share over the past 60 days, while the same for 2026 have moved down 1.22% to $1.62.

CommScope currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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