Top 3 WNS Provider Stocks to Ride WLAN and WiFi Networks Momentum

Zacks Investment Research has some advice for those of you looking to invest in the stock market: buy the 802.11ac WLAN Wave. The column, featured on NASDAQ’s website no less, goes further and even suggests 3 top Wireless Network Solution provider performers for your buying consideration.

First, however, the industry backdrop. Zacks notes that “the U.S. is currently witnessing a boom in WiFi networks,” which is being driven in large part by mobile device adoption and usage, as WiFi networks are handling 50% of the data transmission by smartphone users. The investment firm references an IDC report on the global WLAN market showing 7.7% growth year over year. Zacks also notes that analysts expect the boom to continue:

Research firm WeFi Inc. has projected that the number of commercial WiFi hotspots is expected to reach 10.55 million in the U.S. by 2018.

Businesses are also buying into the WLAN wave, with a special focus on cloud-managed enterprise wireless network solutions as a result of the technology’s inherent efficiency.

As a result of this boom, Zacks notes that a few WLAN solutions providers stand to benefit their stockholders more than most. Here are the three selected by Zacks to help make you rich, along with the analysts’ explanations:

Aruba Networks:

“Being a major solutions provider of WLAN environment and secure WiFi client access solutions, Aruba Networks has operations throughout the Americas, Europe, the Middle East and the Asia Pacific region.

For fiscal 2015, the Zacks Consensus Estimate for earnings stands at 44 cents, indicating year-over-year growth of a whopping 356.47%. Notably, the Zacks Consensus Estimate for earnings increased 9 cents over the last 30 days. For fiscal 2015, the Zacks Consensus Estimate for total revenue stands at $860 million, up 18% year over year.”

Ruckus Wireless:

“The company is a leading solutions provider and infrastructure developer for carrier-class WiFi solutions and virtual WLANs. Ruckus Wireless sells its products to enterprise customers in various industries as well as to mobile operators, cable companies, wholesale operators and fixed-line carriers.

For fiscal 2014, the Zacks Consensus Estimate for earnings stands at 15 cents, indicating year-over-year growth of an enormous 633.33%. The earnings estimate has gained 10 cents over the last 60 days. Ruckus has witnessed a positive average earnings surprise of a significant 250% in the last four reported quarters. For fiscal 2014, the Zacks Consensus Estimate for total revenue stands at $400 million, up 20.85% year over year.”

Meru Networks:

“The company provides virtualized WLAN solutions in the Americas, Europe, the Middle East, Africa and the Asia Pacific region. Meru Networks sells its products and services to education, finance, government, healthcare, hospitality, manufacturing, retail, technology, telecom, transportation and utilities markets.

For fiscal 2014, the Zacks Consensus Estimate for earnings stands at negative 64 cents. Although this figure indicates a decline of 16.36% year-over-year, the estimate has actually improved by 15 cents over the last 60 days. Meru has also witnessed a positive average earnings surprise of almost 4% in the last four reported quarters.”

The incredible year-over-year growth predicted for Aruba and Ruckus certainly speaks to the quality of those companies enterprise WLAN solutions, while Meru’s come-from-behind story demonstrates that company’s  resilience. Hopefully that will be enough to prove Zacks’ advice prescient.

For the Zacks article NASDAQ, click here.