NTGR - 3 Networking Stocks to Keep An Eye on in a Troubled Industry | Benzinga
Weak global economic conditions, inventory absorption by customers and volatile supply chain dynamics continue to be concerns. Also, weak demand from telco and cable service provider customers is affecting the performance of some of the participants of the Zacks Computer - Networking industry. Increasing focus on cloud computing, network security, big data and cloud storage is expected to boost the industry participants' performance in the long run. The accelerated deployment of 5G is driving the proliferation of the Internet of Things (IoT), Advanced Driver Assistance Systems (ADAS), Augmented Reality/Virtual Reality (AR/VR) devices and 5G smartphones, calling for solid networking infrastructure. This spurred the demand for networking products, favoring prospects of prominent industry players like Infinera Corporation (NASDAQ: INFN), NETGEAR Inc (NASDAQ: NTGR) and Intrusion Inc (NASDAQ: INTZ).
Industry Description
The Zacks Computer - Networking industry comprises companies that offer networking and Internet-connected products, including wireless (WiFi and Long-Term Evolution or LTE), Ethernet and powerline, focusing on dependability and ease of use. The products are available in numerous configurations to cater to the changing requirements of consumers in each geographic territory where it operates. Some industry players also provide mission-critical IoT solutions and network security services to help clients build next-generation connected products and implement and manage critical communications infrastructures in demanding environments with enhanced safety levels. Focus on developing IoT sensors, drones and wearables amid increasing demand for cloud computing-based contact tracing applications is driving the industry.
4 Trends Influencing the Industry's Future
Innovation in Networking Technologies is Opening New Business Avenues: The growing clout of Smart Home and Internet-connected products such as Smart TVs, game consoles, High Definition streaming players, security cameras, thermostats and smoke detectors continue to drive innovations in networking. The rapid proliferation of IoT, the increasing popularity of smart connected devices and the growing adoption of cloud computing in network security fuel the demand for an efficient network support infrastructure. The advancements in AI and ML and the high adoption of cloud applications hold immense potential for companies in the industry. Enterprises are striving to manage fixed and wireless devices in a secured infrastructure. To address the demand, industry firms are driving innovation in networking technologies, including network virtualization and Software-Defined Networking (SDN), which favor growth prospects.
Rapid Deployment of 5G to Boost Growth Prospects: Adopting a hybrid/flexible work model triggered the demand for network-intensive applications like video conferencing and cloud services. This accelerated 5G deployment globally. The success of 5G technology hinges on substantial investments to upgrade infrastructure in the core fiber backhaul network to support growth in data services. Efforts to develop smart connected homes, hospitals, factories, buildings, cities and self-driving vehicles bode well for industry players. ...