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 over 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 Q4 EPS of 30 cents and revenues of $330 million. Analysts had been looking for 22 cents and $318.4 million. Management also guided FY08 EPS to $1.12-1.22, versus Street consensus of $1.17. Merriman Curhan Ford subsequently upgraded the shares to "buy", Friedman Billings reiterated its "outperform", and Robert W. Baird noted that the firm's conservative outlook sets the stage for further outperformance.

The stock pushed through moving average resistance on the news and then passed into the initial stage of a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with five "strong buys", two "buys" and fifteen "holds". The stock's Price to Sales ratio (1.63), Price to Book ratio (2.14), Price to Cash Flow ratio (11.11), Price to Free Cash Flow ratio (19.69), Sales Growth rate (24.11%) and EPS Growth rate (87.50%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 82% 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 $14.07 and $21.06. A stop-loss of $15.65 looks good here.

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