The efficiency of high-speed Internet service depends on the excellence of its infrastructure components. An Eden Prairie, Minnesota firm is a leading manufacturer of reliable hardware for the industry, serving big name clients in more than 130 countries.

ADC Telecommunications (NASDAQ: ADCT) provides infrastructure equipment used by wireline, wireless, cable, broadcast and enterprise networks. Its systems connect high-speed Internet, data, video and voice services to residential, business and mobile subscribers. The firm also provides network management software and integration services. Ciena (NASDAQ: CIEN), Morgan Stanley (NYSE: MS) and Verizon Communications (NYSE: VZ) are on the company's customer list.

The firm surprised the Street last week when it reported fiscal Q3 EPS of 37 cents and revenues of $346.1 million. Analysts had been looking for 23 cents and $329.1 million. The CEO cited better than expected strength in the connectivity, wireless and services businesses. Management also guided FY07 EPS to $1.11-$1.15 (92 cent consensus) and FY07 revenues to $1.308-$1.313 billion ($1.29B consensus). The stock popped on the news and has since been forming a bullish "pennant" consolidation pattern. Equities frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with six "strong buys" and sixteen "holds." Analysts see a 19% growth rate, through the next year. The stock's P/E ratio (14.20), Price to Sales ratio (1.81), Price to Book ratio (2.40), Price to Cash Flow ratio (9.25), Price to Free Cash Flow ratio (26.89), EPS Growth rate (42.31%), Net Profit Margin (13.33%) and Return on Assets (10.53%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 79% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $13.40 and $21.06. A stop-loss of $17.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.