Windstream To Extend Fiber Route, Link Los Angeles To Dallas

Windstream Wholesale, an operating brand of Windstream Holdings, Inc. (NASDAQ:WIN) , has announced a new fiber route connecting Los Angeles to Dallas. This new southern route, scheduled for completion in the third quarter of 2018, will connect to the existing high-density metro fiber network in Phoenix, adding almost 1,700 miles to Windstream’s existing coast-to-coast long-distance network. This announcement is part of Windstream’s fiber network expansion strategy.

Strategic Move Boosts Phoenix Market Presence

The strategic initiative is aimed at enhancing its market presence in Phoenix, which is one of the fastest growing cities in the United States. According to Forbes, Phoenix is one of the high-potential cities for business, both for start-ups and big companies. Not only are big tech companies setting up new offices in the city but numerous start-up companies are also cropping up, drawn to the cheaper standard of living and other factors. Windstream expects to capitalize on this revenue-generating opportunity by expanding its fiber network through Phoenix. Its strong presence in this market will give customers access to better and improved network connectivity with larger bandwidth, which is crucial for running a data- driven business efficiently.

This fiber network extension will significantly aid transport customers to smoothly carry out their cloud migration and digital transformation strategies. Mike Shippey, president of Wholesale at Windstream Enterprise and Wholesale, believes that the completion of this new corridor between Los Angeles and Dallas reflects the company’s commitment to improve customer experience and extend network channel as a leading national transport provider.

Windstream launched two new brands for both its enterprise and wholesale businesses in February this year, following which, it has outperformed the industry on an average, with a return of 8.4% against a decline of 7.5% for the latter. Whether the new route extension will help Windstream maintain this performance remains to be seen.

Zacks Rank and Stocks to Consider

Windstream currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Comtech Telecommunications Corp. (NASDAQ:CMTL) with a Zacks Rank #1 (Strong Buy), PC-Tel, Inc. (NASDAQ:PCTI) and SITO Mobile, Ltd. (NASDAQ:SITO) with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech Telecommunications has an expected long-term earnings growth rate of 5%.

PC-Tel has exceeded earnings estimates twice in the trailing four quarters with an average of 17.9%.

SITO Mobile has an expected long-term earnings growth rate of 25%.

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