Adc Telecommunication sees growth in China

Financial Tides has noticed all the new contracts Adc Telecommunications has signed by their Network Solutions division in the Chinese markets. ADC Telecommunications ( ADCT ) is a leading global supplier of broadband network equipment, fiber optics, software and systems integration services that enable communications service providers to deliver high-speed Internet, data, video and voice services to consumers and businesses worldwide.

Analysts on Wall Street have noticed this stock and has given their clients 7 buy and 7 hold recommendations. Although they estimate that sales will only increase by 6% next year they are predicting increases in earnings per share of 133.30& this year, 42.90% next year and an 11.83% 5 year annual compounded growth rate of 11.83% -- double digit is good!

Investor sentiment is positive with the CAPS members on Motley Fool voting that the stock will beat the market 332 to 31 with the more experienced All Stars agreeing 112 to 5. Of the Wall Street columnists Fool follows their articles have been positive 14 to 0.

The real story has been in the stocks recent price momentum with the stock up in 4 of the last 5 sessions for a 17.01% gain in only 5 days. Barchart's 13 technical indicators have 10 of 13 possible buy signals for a 72% technical buy score. The stock trades around 8.37 with a 50 day moving average of 7.83.

A momentum investment play with:

• Recent upward price momentum of 17.01% in a week
• Wall Street predicting increases in sales and earnings
• Positive Investor sentiment

Jim Van Meerten is an investor who writes about investing on Financial Tides, Barchart and Seeking Alpha. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No positions in ADCT at the time of publication