Unknown to many investors, Motorola Solutions has been flying under the radar in the tech investment scene, overshadowed by big names such as Nvidia, Alphabet, and Microsoft. According to Trent Masters, portfolio manager at Alphinity Investment Management, this telecommunications company is a hidden gem in the market. Despite being commonly associated with phones, Motorola Solutions is primarily focused on public safety, making it a unique and solid business investment.
Masters emphasized that about 70% of Motorola Solutions’ business is dedicated to Land Mobile Radio (LMR), which includes the communication devices used by first responders. The remaining portion of the business is comprised of video security and building command center units. This clear focus on public safety sets Motorola Solutions apart from the competition, providing a stable foundation for growth.
As an investor, Masters is bullish on Motorola Solutions, particularly due to the ongoing upgrade cycle of the LMR business. The introduction of new devices at higher prices, along with the increasing traction of the video security and command center units, bodes well for the company’s future financial performance. This, coupled with consistent results and a strong market presence, positions Motorola Solutions as a compelling investment opportunity.
While AI may not be a primary driver for Motorola Solutions, there is potential for the company to leverage this technology for growth. Masters highlighted the use of AI in video security solutions, where it could enhance capabilities such as identifying individuals carrying weapons and controlling access to secure locations. This strategic integration of AI into specific areas of the business could further differentiate Motorola Solutions in the market.
Traded on the New York Stock Exchange, shares of Motorola Solutions have seen significant growth, with an increase of over 18% year to date and over 30% in the last 12 months. Analysts covering the stock have generally expressed positive outlooks, with the majority recommending a buy or overweight rating. The average price target of $376.38 suggests modest downside potential, indicating a favorable valuation for potential investors.
Motorola Solutions represents a unique opportunity for investors seeking exposure to a stable and growing sector of the market. With a clear focus on public safety, a track record of strong performance, and the potential for AI integration, this underrated stock could prove to be a hidden gem for those willing to look beyond the headlines.