We recently published a list of Jim Cramer’s Top Picks: 10 Stocks to Buy and Sell. Since Motorola Solutions Inc (NYSE:MSI) ranks 7th on the list, it deserves a deeper look.
Commenting on the aggressive rate cut by the Federal Reserve, Jim Cramer said in a latest program on CNBC that the “double” rate cut was needed for the economy and it would help the housing market, industrials and companies catering to the “less well-off” households.
“There really are two economies in this country. There is the one that needs lower interest rates because business is slowing and it’s harder to find a job and then there is one that says we don’t really care about where the stinking rates are. That’s who we can get a double rate cut today and still going lower.”
Cramer said he is currently in Silicon Valley and after talking to many companies, he feels tech companies do not care about interest rates since they are selling to businesses. Cramer said these technology companies are focused on innovation.
For this article, we picked 10 stocks Jim Cramer recently talked about during his latest programs on CNBC. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Photo by Jonas Leupe on Unsplash
Motorola Solutions Inc (NYSE:MSI)
Number of Hedge Fund Investors: 42
When asked about Motorola Solutions Inc (NYSE:MSI), Cramer said the company is “incredibly, incredibly good.”
“I got to tell you, it does two-way radios, it does barcodes, it does lots of government infrastructure and it just coins money,” Cramer added.
Motorola Solutions Inc (NYSE:MSI) has raised its full-year revenue growth guidance to 8% as it reported strong growth in the second quarter for Video Security and Land Mobile Radio (LMR) businesses, with year-over-year increases of 10% and 9%, respectively.
For Motorola Solutions Inc (NYSE:MSI), Video security remains a key growth area for the company, covering both fixed and mobile solutions that offer end-to-end security for the public sector, including detection, analysis, and communication tools. Rising demand for public safety from governments and agencies continues to drive this expansion.
Motorola Solutions Inc (NYSE:MSI) has been investing in its video offerings, launching new products like a video recorder that works on both cloud and on-premises platforms. Its large customer base for LMR products also relies on regular upgrades and services, supported by the ongoing APX NEXT refresh cycle, which could boost revenue as outdated tech is replaced. Analysts believe the company can deliver high-single-digit revenue growth soon. The LMR business is benefiting from supply chain improvements and should grow 10% in FY24. In video, Motorola’s Avigilon Unity Video 8, its latest surveillance solution, should drive a 12% increase. Cloud-based video management could also make this business more recurring.
Wedgewood Partners stated the following regarding Motorola Solutions, Inc. (NYSE:MSI) in its Q2 2024 investor letter:
“Motorola Solutions, Inc. (NYSE:MSI) was a contributor to performance as the Company continued its steady execution with +10% sales growth and +20% operating earnings growth. Motorola also continues to grow its backlog due to its competively advantaged core land mobile radio (LMR) business is a critical long-term solution for emergency services around the globe. The technology behind LMR is relatively simple compared to current 5G wireless standards, but it is an extremely robust implementation that must withstand regular and even mega catastrophes to guarantee uptime to the emergency services that depend on it for communications. Motorola has unmatched competitive positioning in this core business and should be able to continue to expand value-added service offerings to LMR and drive attractive long-term growth.”
Overall, Motorola Solutions Inc (NYSE:MSI) ranks 7th on Insider Monkey’s list titled Jim Cramer’s Top Picks: 10 Stocks to Buy and Sell. While we acknowledge the potential of Motorola Solutions Inc (NYSE:MSI), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
