CommScope

COMM

Market cap $4.38B

COMM's 251.5% six-month surge is fueled by booming ANS sales, RUCKUS demand and major portfolio moves.

The greatest beneficiaries of a Santa rally tend to be the year's dominant themes. December seasonality gives investors another timely opening to lean into three stocks that focus on the market's strongest theme of 2025 – AI infrastructure boom. The economic backdrop consists of moderating growth combined with softening data supporting lower interest rates and the potential for strong seasonal returns.

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Commscope (COMM) delivered strong Q3 results, with CCS segment outperforming and contributing significant cash flow ahead of its sale to Amphenol. RemainCo's earnings show cyclical patterns but outperform peers in revenue growth and EBITDA margin, despite sequential declines in Ruckus and ANS segments. Around $8.20 excess cash per share is available for a special dividend after the CCS sale, with the final amount set by the board.

Stocks like PAHC, ATRO, COMM and HRTG are seeing price strength and have a high chance of carrying the momentum forward.

CommScope is a leading infrastructure provider for data centers and communications, riding the AI-powered growth wave. COMM remains highly undervalued, trading at a forward P/E of 11 versus peers at 24x and S&P 500 average of 23x. I rate COMM a Buy with a $20.50 price target, implying 22% upside and continued outperformance driven by AI and connectivity demand.

CommScope is well-positioned to benefit from surging demand for high-speed connectivity, digital infrastructure, and next-generation wireless technologies. COMM's strategic restructuring, including the $10B CCS asset sale, reduces debt and refocuses on high-growth broadband and enterprise wireless segments. Q3 2025 results exceeded expectations, with strong revenue and EBITDA growth, supporting management's optimistic outlook and upgraded full-year guidance.

CommScope Holding Company (COMM) is well-positioned for further upside, benefiting from strong AI infrastructure demand and robust Q3 results. COMM delivered a significant Q3 earnings beat, driven by DOCSIS 4.0, Wi-Fi 7 upgrades, and strong RemainCo asset performance, with healthy cash flow and liquidity. Valuation remains attractive, with shares trading 20% below fair value based on EV/EBITDA and potential for continued earnings growth through 2027.

CommScope stock has galloped more than 200% higher in this year's stock market, shedding its penny stock pricing.

RICHARDSON, Texas--(BUSINESS WIRE)-- #AI--CommScope (NASDAQ: COMM) today announced its new RUCKUS® MDU (Multi-Dwelling Unit) suite featuring innovative AI and Wi-Fi 7 solutions.