Dallas, Texas 04/07/2014 (FINANCIALSTRENDS) – Alcatel Lucent SA (ADR) (NYSE:ALU), a French telecommunications and networking business company, has recently been witnessing a good progress in its stocks, thanks to the company’s cost-cutting strategy as well as sale of some assets announced.
The new CEO of Alcatel, Michel Combes, is responsible for the execution of these new methods and the major turnaround. Alcatel Lucent SA (ADR) (NYSE:ALU) has gained specialization in cloud networking, Internet protocol and ultra broadband. All this has been the main reason for the boost in the company’s profitability. The initiatives taken by the CEO has resulted in the gain of about 200% in the last one year; and the company is still expecting some more improvements.
A better option as compared to CISCO
In the current scenario, Alcatel Lucent SA (ADR) (NYSE:ALU) is a much better option for buying as compared to its competitor Cisco (the company that is struggling ever since the scandal of NSA spying has been exposed). The investors are expected to get strong and robust growth delivered by Alcatel-Lucent. Alcatel Lucent SA (ADR) (NYSE:ALU) is getting better gross profit margins day by day. Gross margin for the last quarter increased by 400 basis points to 34.3%.
On top of it the company’s decision to sell the assets that are non-core has been very beneficial to the investors.
In short why Alcatel is a better option
– The turnaround in the company is completely on the track and the analysts have really high hopes from the stock.
– Alcatel Lucent SA (ADR) (NYSE:ALU) has always been providing products that are in accordance with the industry’s requirement, and hence always high chances of getting success.
Alcatel has got a better opportunity to score better over Cisco, and thus becomes a viable option.