Will Innovation in Broadband Technology Propel HLIT's Stock Growth?

Harmonic Inc. HLIT recently announced the launch of the cOS Virtualized Broadband Platform that empowers operators to deliver symmetrical multi-gigabit Internet speeds with lower latency, enhanced security and reliability. In this venture, the company collaborated with Comcast, one of the leading broadband providers in the United States, to develop the industry's first Unified DOCSIS 4.0 fiber solution ready for real-world deployments.

DOCSIS 4.0 is the latest standard for cable broadband services designed to provide high-speed internet and improved network efficiency for advanced data-intensive applications. The cOS virtualized broadband platform integrates both the variants of DOCSIS 4.0 Full Duplex and Frequency Division Duplexing. The combination of FDX and FDD in a single platform ensures greater flexibility, allowing operators to deliver multiple gigabit symmetrical speeds of up to 9Gbps over the existing broadband infrastructure.

Eliminating the requirement of a complete infrastructure overhaul reduces costs, expedites time to market, and ensures a smooth transition to robust network. This feature makes the cOS platform well-suited for rural and remote areas. In fact, HLIT's fiber solutions match the criteria for the Build America, Buy America initiative and are eligible for funding under the Broadband Equity Access Deployment program.

Will This Venture Drive HLIT's Share Performance?

The unified DOCSIS 4.0 solution has set a new industry benchmark by merging FDX and FDD technology to power an intelligent ecosystem of network edge devices and provide high-speed broadband services.

Harmonic boasts an extensive customer base, delivering broadband services to more than 30 million homes across North America, Asia, Europe and Latin America. The recent innovations will further solidify its foothold in those regions and accelerate its business expansions. The cost efficiency and versatility of Harmonic's cOS virtualized broadband platform will likely boost subscriber growth, particularly in underserved rural areas.

HLIT's Stock Price Performance

The stock has gained 48.3% over the past year compared with the industry's growth of 84.4%.

Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

Harmonic currently sports a Zacks Rank #1 (Strong Buy).

Arista Networks, Inc. ANET carries a Zacks Rank #2 (Buy) at present.

In the last reported quarter, it delivered an earnings surprise of 8.25%. It is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

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

Its 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 its UI's visibility for future demand and inventory management techniques.

Workday Inc. carries a Zacks Rank of 2 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.

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