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Motorola Solutions is a Good Stock to Own for 2022, Here’s Why

Published 12/21/2021, 10:58 AM
Updated 12/21/2021, 11:30 AM
© Reuters.  Motorola Solutions is a Good Stock to Own for 2022, Here’s Why
MSI
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The stock of leading communications solutions provider Motorola Solutions (NYSE:MSI) hit its 52-week price high last week. The company posted double-digit revenue and earnings growth in its last reported quarter and ended with a strong order-backlog position. Also, given its recent acquisitions and stable margins, we think MSI is poised for long-term growth. Thus, MSI could be worth adding to one’s portfolio as we head into 2022. Read on for details.Motorola Solutions, Inc. (MSI) in Schaumburg, Ill., provides mission-critical communications and analytics worldwide. The company operates in two segments: products and systems integration and services; and software. On December 16, MSI announced the acquisition of 911 Datamaster, Inc., a next-generation 9-1-1 (NG9-1-1) data solutions provider. The acquisition is expected to enhance MSI’s organizational workflows and reinforce its commitment to being a leader in command center solutions. MSI shares have gained 50.3% over the past year and 50.5% year-to-date to close its last trading session at $255.90. The stock is trading above its 50-day and 200-day moving average. The median price target of $285.88 indicates a potential 11.7% upside of 11.7% from its last closing price.

"With 911 Datamaster’s technology, we continue to enhance our integrated command center software suite that is trusted by agencies across North America to manage their operations with greater efficiency, accuracy, and safety," said Mahesh Saptharishi, executive vice president and chief technology officer, Motorola Solutions. The stock hit its 52-week high of $266.86 on the same day. In November, the company acquired Envysion, Inc., a leading provider of enterprise video security and business analytics solutions for the quick-service restaurant and retail industries.

MSI posted double-digit revenue and earnings growth in its last reported quarter, despite struggling with several supply chain issues and cost pressures over the quarter. Furthermore, demand for its products and services has been robust, and the company ended the quarter with a solid backlog position. MSI reported a record $11.4 billion backlog, up 7%, from the prior-year quarter, primarily driven by a 24% rise in products and systems Integration segment backlog. The growth was mainly due to strong LMR demand, and the company expects demand for its products to outpace its supply for the remainder of 2021.

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