Is Motorola Solutions Stock Outperforming the Dow?

Chicago, Illinois-based Motorola Solutions, Inc. (MSI) provides public safety and enterprise security solutions in the U.S. and internationally. With a market cap of $70.6 billion, the company operates through Products and Systems Integration, and Software and Services segments.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and MSI fits right into that category with its market cap exceeding this threshold, reflecting its dominance in the communication equipment industry. The company benefits from a massive portfolio of offerings, a significant global reach, and long-standing consumer confidence.

However, MSI stock has fallen 16.7% from its all-time high of $507.82, recorded on Nov. 11, 2024. Shares of Motorola have declined 13.6% over the past three months, falling behind the Dow Jones Industrial Average’s ($DOWI) 4.1% fall during the same time frame.

Over the past six months, MSI shares declined 1.9%, underperforming Dow’s 6.1% gain. However, over the past 52 weeks, MSI stock soared 26.6%, significantly outperforming DOW's 10.3% gains during the same time frame.

To confirm the recent downturn, Motorola stock has been trading mostly below its 200-day moving average since mid-February 2025, and below its 50-day moving average since mid-December 2024 with some fluctuations.

Despite delivering impressive results in its recent Q4 earnings release, Motorola stock declined 6% on Feb. 14. The company reported a 6% increase in its sales, which amounted to $3 billion. Moreover, its non-GAAP EPS came in at $4.04, exceeding Wall Street expectations and rising 4% from the year-ago value. The company also reported a 17% increase in its operating cash flow, which amounted to $1.1 billion. MSI’s outlook for the fiscal year 2025 remains optimistic, with an expected revenue growth between 5.0% and 5.5% for the first quarter and a revenue growth of approximately 5.5% for the full year.

Moreover, MSI stock surged 3.1% after receiving the highest-level security authorization from the Federal Risk and Authorization Management Program (FedRAMP^®) for its federal cloud on Feb. 19. The authorizations allows federal agencies to seamlessly procure and deploy select Motorola cloud software, APX-series radios and APX radio applications.

In the communication equipment industry, MSI’s peer, Nokia Oyj (NOK), is in the lead, surging 23.4% over the past six months and 41.4% over the past 52 weeks.

Moreover, Wall Street analysts remain moderately bullish on MSI’s prospects. The stock holds a consensus “Moderate Buy” rating among the 11 analysts covering it. The mean target of $522.12 suggests a potential upside of 23.4% from the current market prices.