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Verizon (VZ) Public Sector Arm Wins $495 Million DoD Contract

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Verizon Communications Inc.’s (VZ - Free Report) Public Sector unit has been chosen by the U.S. Department of Defense (“DoD”) to provide a next-generation wide area network that will support critical research activities.

Valued at $495 million, the deal will see Verizon deploy switch, router, firewall and edge computing capabilities. Verizon’s solutions connect 200 Research, Development, Test and Evaluation laboratories and High Performance Computing locations across the United States and other countries.

The company’s investments in enterprise business have enabled it to deliver customized solutions for the DoD and the Defense Research and Engineering Network (DREN). Its managed services are expected to create a defining experience for research teams using the DREN platform.

The DREN is a high-speed fiber-optic network that connects military supercomputers and multi-disciplinary teams of researchers. The High Performance Computing Modernization Program provides the DoD with supercomputing capabilities that enable its scientists to conduct a wide range of tests.

With high bandwidth and low latency, different teams will be able to collaborate in near-real-time to develop big data analyses, artificial intelligence and machine learning. This, in turn, will help in tackling complex problems, ranging from climate change and pandemic response to autonomous defense systems.

Verizon enables public sector organizations to enhance efficiency while maintaining security and compliance. The company’s solutions help to control costs, simplify management and increase transparency.

Verizon’s disciplined network strategy for long-term sustainable growth, along with operational execution, is noteworthy.

Verizon’s shares have inched up 0.7% in the past year compared with 11.4% growth of the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are Cambium Networks Corporation (CMBM - Free Report) , Altice USA, Inc. (ATUS - Free Report) and Vicor Corporation (VICR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cambium delivered a trailing four-quarter earnings surprise of 46.5%, on average.

Altice delivered a trailing four-quarter earnings surprise of 61.5%, on average.

Vicor delivered a trailing four-quarter earnings surprise of 80.6%, on average.

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