Motorola Solutions Stock Testing Price Floor – Buy Now?
Motorola Solutions (MSI) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($355.05 – $392.43), levels from which it has bounced meaningfully before. In the last 10 years, Motorola Solutions stock received buying interest at this level 3 times and subsequently went on to generate 20.5% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 5/10/2024 | 10.2% | 82 |
| 7/31/2024 | 26.8% | 100 |
| 4/8/2025 | 24.5% | 156 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for MSI?
Rebound likely; strong fundamentals & tailwinds.
Motorola Solutions’ Q3 2025 results surpassed expectations with record revenue and raised full-year EPS guidance. Strategic acquisitions, like Silvus, and key partnerships, such as Google integration for emergency services, enhance its market position. Despite a year-to-date decline placing MSI near its 52-week low, analysts maintain a “Buy” consensus with average price targets suggesting over 30% upside. Significant government funding for public safety and border security (OBBBA) provides substantial industry tailwinds, indicating the current valuation is likely undervalued given robust operational performance and future growth prospects.
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How Do MSI Financials Look Right Now?
- Revenue Growth: 6.4% LTM and 9.5% last 3-year average.
- Cash Generation: Nearly 21.5% free cash flow margin and 25.1% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for MSI was 6.4%.
- Valuation: MSI stock trades at a PE multiple of 36.0
| MSI | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Communications Equipment | – |
| PE Ratio | 36.0 | 23.5 |
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| LTM* Revenue Growth | 6.4% | 6.0% |
| 3Y Average Annual Revenue Growth | 9.5% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 6.4% | 0.1% |
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| LTM* Operating Margin | 25.1% | 18.8% |
| 3Y Average Operating Margin | 23.8% | 18.3% |
| LTM* Free Cash Flow Margin | 21.5% | 13.4% |
*LTM: Last Twelve Months | For more details on MSI fundamentals, read Buy or Sell MSI Stock.
And What If The Support Breaks?
MSI isn’t immune to big drops, even with all its strengths. It plunged 81% in the Dot-Com bubble and 84% during the Global Financial Crisis. More recent shocks hit it too—around 18% in 2018, 33% in the Covid pandemic, and 27% during the inflation shock. Strong fundamentals can cushion, but big sell-offs hit almost every stock hard.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read MSI Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
Still not sure about MSI stock? Consider the portfolio approach.
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