Motorola Solutions, Inc. MSI recently announced that it has inked a long-term service support agreement with Singapore’s leading public transport operator SBS Transit. The contract, valued at S$14 million, will cover support and maintenance of SBS Transit’s radio communication infrastructure at Downtown Line, Sengkang, and Punggol Light Rapid Transit system for 15 years.
 
SBS Transit has relied on Motorola’s TETRA radio system in its daily operations for the past decade. The recent venture signifies the continuation of that long-standing business relationship. SBS Transit recorded 428 million passenger trips in 2023, an uptick of around 18%. As demand for rail services rapidly rises, Singapore’s leading public transport operator is aiming to enhance its infrastructure to offer a reliable, accessible, and sustainable transit option to travelers.

MSI’s TETRA radio communication technology delivers consistent and efficient communication tailored to match the needs of different markets. Its rugged and reliable TETRA devices establish a secure communication link between command centers and frontline workers to bolster situational awareness, collaboration, and safety across the entire operations. It also offers a comprehensive range of support services that streamline system maintenance, training, and network security management to maximize the system uptime.

Per the contract, MSI will boost the capabilities of SBS Transit’s existing TETRA Radio system. It will deploy on-site and remote network monitoring, technical support from locally-based teams, cyber resilience services, and system updates. This will ensure the long-term durability and resiliency of SBS Transit’s vast TETRA platform, which includes around 8,700 radios. Motorola’s managed service model will enable SBS Transit to smoothly run their daily operations while also planning for the expansion of rail services.

Will This Development Drive MSI’s Share Performance?

The market for mission-critical radio communications products is expected to grow at a substantial rate in upcoming years. Growing investments in smart city projects, efficient transport infrastructure and focus on public safety are driving up demand for Terrestrial Trunked Radio systems. Motorola with its robust portfolio of TETRA solutions is well-positioned to capitalize on this market trend.

MSI’s Stock Price Performance

The stock has gained 62.6% over the past year compared with the industry’s growth of 59.2%.

Image Source: Zacks Investment Research

MSI’s Zacks Rank & Stocks to Consider

Motorola currently carries a Zacks Rank #3 (Hold).

Zillow Group, Inc. ZG sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 25.81%. ZG delivered an earnings surprise of 37.41%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor. 

Ubiquiti Inc. UI sports a Zacks Rank of 1 at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.

UI’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved UI’s visibility for future demand and inventory management techniques.

Workday Inc. WDAY sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.
 
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes the process easier for organizations to provide analytical insights and decision support.