Stock of the Day

February 13, 2020

Motorola Solutions (MSI)

$421.38
-$13.13 (-3.0%)
Market Cap: $72.54B

About Motorola Solutions

Motorola Solutions, Inc. provides public safety and enterprise security solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce. Its land mobile radio communications, and video security and access control devices include two-way portable and vehicle-mounted radios, fixed video cameras, and accessories; communications network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Software and Services segment provides public safety and enterprise command center, unified communications applications, mobile video equipment, and video software solutions; repair, technical support, and maintenance services; and monitoring, software updates, and cybersecurity services to government, public safety, and commercial communications networks. It serves hospitality; manufacturing; military and defence; public safety; mining; oil and gas; transportation and logistics; utilities industries. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.

Motorola Solutions Bull Case

Here are some ways that investors could benefit from investing in Motorola Solutions, Inc.:

  • Motorola Solutions, Inc. has received multiple upgrades from analysts, with price targets recently raised to as high as $530.00, indicating strong market confidence in the company's growth potential.
  • The company reported a robust return on equity of 251.96%, showcasing its ability to generate significant profit from shareholders' equity, which is a positive indicator for investors.
  • With a current stock price of $437.35, Motorola Solutions, Inc. is trading well below its 1-year high of $507.82, suggesting potential for price appreciation as the market stabilizes.
  • Motorola Solutions, Inc. operates in the growing sectors of public safety and enterprise security, which are increasingly in demand, especially in the current global climate.
  • The company has a solid net margin of 14.65%, reflecting its efficiency in converting revenue into actual profit, which is attractive for investors looking for financially healthy companies.

Motorola Solutions Bear Case

Investors should be bearish about investing in Motorola Solutions, Inc. for these reasons:

  • Despite the positive outlook, Motorola Solutions, Inc. recently missed earnings expectations, reporting $3.75 EPS compared to the consensus estimate of $3.85, which may raise concerns about its short-term performance.
  • The company has a high debt-to-equity ratio of 4.23, indicating that it relies heavily on debt financing, which can be risky if market conditions change or interest rates rise.
  • Motorola Solutions, Inc. has a relatively high P/E ratio of 47.90, suggesting that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • Recent downgrades from analysts, including a shift from a "buy" to a "hold" rating, may signal a lack of confidence in the stock's near-term performance.
  • The stock has experienced a decline of 6.2% recently, which could indicate volatility and uncertainty in the market, making it a less attractive option for risk-averse investors.

Recent News