Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Zayo (ZAYO) Hits 52-Week High On Healthy Growth Dynamics

By Zacks Investment ResearchStock MarketsJan 02, 2020 08:02PM ET
www.investing.com/analysis/zayo-zayo-hits-52week-high-on-healthy-growth-dynamics-200496153
Zayo (ZAYO) Hits 52-Week High On Healthy Growth Dynamics
By Zacks Investment Research   |  Jan 02, 2020 08:02PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Shares of Zayo Group Holdings, Inc. (NYSE:ZAYO) scaled a new 52-week high of $34.71 during yesterday’s trading session, before closing a tad lower at $34.69. The stock has the potential for further price appreciation and looks poised to touch new highs in 2020 on the back of healthy growth dynamics.

Growth Drivers

Zayo is well poised to benefit from a diversified blue-chip customer base that comprises the largest and most sophisticated users of bandwidth. The company aims to grow the network business at 5% and beyond while controlling expenses to boost OpEx efficiency. Zayo emphasizes on less than 12-month payback deals while opting for strategic investments like e-rate deals, mobile infrastructure and long-haul fiber. Such deals leverage its existing assets in conjunction with new builds. These are likely to deliver strong free cash flow yields and attractive returns on invested capital.

Markedly, Zayo’s multi-site data center portfolio, ability to customize its solutions and capability to connect globally over its network are key growth drivers. The company continues enhancing global reach by expanding its fiber footprint and forging partnerships with local providers. It has been experiencing broad-based demand across all the customer verticals, which should drive its top line.

Management is bullish about the prospects of its largest business segment, Fiber Solutions, as it is witnessing a very strong deal momentum. We also remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) company. Over the past year, the stock has outperformed the industry with an average return of 42.3% compared with the 17% rise of the latter.



The company recently augmented the network connectivity between Montreal, Quebec to Albany, NY with the expansion of its fiber network infrastructure in the region. The network expansion will add about 100G capable new wavelength route miles to connect the largest city in Quebec, Canada with one of the busiest cities in the United States. The extensive wavelength network is expected to benefit regional business and enterprise customers with dedicated bandwidth facility for data-intensive content, streaming services and IoT applications. The shorter and more direct route between the cities of two neighboring countries is likely to be operational by January 2020.

Such opportune business deals, with continued growth impetus and core focus, perhaps boosted investors’ confidence and catapulted its share price to a new 52-week high.

Stocks to Consider

Better-ranked stocks in the broader industry include KT Corporation (NYSE:KT) , PLDT Inc. (NYSE:PHI) and Mobile TeleSystems PJSC (NYSE:MBT) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KT Corporation has a long-term earnings growth expectation of 11.5%.

PLDT is currently trading at a forward P/E of 8x.

Mobile TeleSystems has a long-term earnings growth expectation of 4.9%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>



Zayo Group Holdings, Inc. (ZAYO): Free Stock Analysis Report

KT Corporation (KT): Free Stock Analysis Report

PLDT Inc. (PHI): Free Stock Analysis Report

Mobile TeleSystems PJSC (MBT): Free Stock Analysis Report

Original post
Zayo (ZAYO) Hits 52-Week High On Healthy Growth Dynamics
 

Related Articles

Zayo (ZAYO) Hits 52-Week High On Healthy Growth Dynamics

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email