CommScope Holding Company, Inc. (COMM): A Bull Case Theory

We came across a bullish thesis on CommScope Holding Company, Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on COMM. CommScope Holding Company, Inc.'s share was trading at $18.35 as of December 16th. COMM’s trailing and forward P/E were 16.26 and 3.72 respectively according to Yahoo Finance.

CommScope Holding Company (COMM) is a leading provider of network infrastructure solutions, supplying the critical fiber-optic cabling, connectors, panels, and active optical cables that connect transceivers and switches across data centers and global telecom networks. As demand for bandwidth-intensive applications continues to rise, COMM sits at the core of the physical layer that enables cloud computing, hyperscale data centers, and next-generation telecom deployments. Its product portfolio is deeply embedded in customer infrastructure, creating switching costs and long replacement cycles that support stable demand as networks scale in complexity and capacity.

From a financial perspective, the company is positioned at an inflection point. Revenue is expected to grow at an estimated 13.0% in FY26, reflecting improving end-market conditions and increased investment in data center and telecom infrastructure. More importantly, EBITDA is projected to grow by an estimated 90.4% in the same period, signaling meaningful operating leverage as volumes recover and prior cost actions flow through the income statement. This sharp earnings acceleration is expected to translate into a net income margin of approximately 7.3%, underscoring a clear shift from survival and restructuring toward sustainable profitability.

Despite this improving outlook, COMM’s valuation remains undemanding. The stock trades at roughly 1.9x NTM EV/Sales and 8.1x NTM EV/EBITDA, while its NTM P/E of 9.8x implies the market is discounting the durability of the earnings recovery. As EBITDA and net income normalize, these multiples suggest significant room for rerating, particularly if revenue growth and margin expansion materialize as expected. Overall, COMM offers a leveraged but improving earnings profile, exposure to long-term data center and telecom infrastructure growth, and a valuation that does not fully reflect the scale of its projected operating recovery.

Previously we covered a bullish thesis on Arista Networks Inc (ANET) by Charly AI in April 2025, which highlighted strong AI and cloud networking demand, high margins, and a fortress balance sheet. The company's stock price has appreciated approximately by 81.48% since our coverage. This is because AI infrastructure spending accelerated. The thesis still stands as structural demand remains intact. Oliver | MMMT Wealth shares a similar but emphasizes on valuation-driven upside in network infrastructure.

CommScope Holding Company, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held COMM at the end of the third quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of COMM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COMM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.