How you can take advantage
The tech upgrade cycle when it comes to wireless infrastructure is pretty straightforward. First, wireless providers announce the race to deploy new networks, then fiber-optic and fiber-optic component suppliers benefit, and then finally, networking equipment makers, such as data and networking optimization join the party not long after. With that mind in, here are a few companies that could be next in line to see big gains that you would be wise to have high on your watchlist:
Source: CiscoSP360, Flickr.
Cisco Systems, Inc. (NASDAQ:CSCO)
Simply put, when big data is being moved around, Cisco Systems, Inc. (NASDAQ:CSCO) should be one of the first names investors turn to. With a huge focus on big data center servers and switches, AT&T, Sprint, and T-Mobile’s plans to spend heavily on trying to catch Verizon in 4G LTE capability should have clued investors into Cisco Systems, Inc. (NASDAQ:CSCO) as a potential beneficiary. Cisco Systems, Inc. (NASDAQ:CSCO) ‘s recent earnings results certainly haven’t given shareholders anything to write home about, but its steady cash flow and cost-cutting tactics via layoffs should result in a surprisingly profitable 2014 that I believe will catch Wall Street off guard.
Juniper Networks, Inc. (NYSE:JNPR)
Cisco’s little brother, Juniper Networks delivered impressive second-quarter results in July despite the muted reaction by investors to the retirement of CEO Kevin Johnson. Juniper Networks, Inc. (NYSE:JNPR) was not only able to deliver a 7% increase in revenue over the previous year and guide its third-quarter projections slightly ahead of the Street, but it also commented that it was seeing “early signs of improving security demand.” That right there is Juniper Networks, Inc. (NYSE:JNPR)’s hint that it expects orders to begin streaming in perhaps as early as the second half of this year.
F5 Networks, Inc. (NASDAQ:FFIV)
In addition to hardware, you should also have your eyes on companies like F5 Networks, Inc. (NASDAQ:FFIV) , which is an application delivery network technology specialist. In English, that just means it provides traffic management on servers and optimizes data routing. Newer wireless networks are capable of delivering more information at faster speeds which will strain existing delivery technology if it isn’t improved at the same time as the wireless infrastructure upgrades. I believe the fears over reduced government spending for F5’s network-based applications will prove overdone and F5 Networks, Inc. (NASDAQ:FFIV) will surprise investors in 2014.
The article Network Equipment Makers: You’ve Been Cleared for Takeoff originally appeared on Fool.com and is written by Sean Williams.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends Cisco Systems and F5 Networks. The Motley Fool owns shares of F5 Networks.
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