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Verizon (VZ) 5G Ultra to Reach 175 Million People by 2022-End

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Verizon Communications Inc. (VZ - Free Report) recently announced plans to accelerate the availability of its 5G Ultra Wideband network, covering 175 million people by the end of 2022.

Verizon’s growth strategy includes 5G mobility, nationwide broadband and mobile edge compute and business solutions. The telecom giant expects these trends to drive 4% growth in service and other revenues in 2024 and beyond.

The company is witnessing significant 5G adoption and fixed wireless broadband momentum. Increasing demand for premium mobility and broadband offerings instills optimism.

The stock has, however, lost 2.4% in the past year compared with the industry’s decline of 8%.

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Verizon’s future-proof network is built on strong demand for mobility, broadband and cloud. The partnership with Meta combines Verizon’s 5G Ultra Wideband network and edge compute capability with Meta’s technology for metaverse applications.

Verizon introduced +play, a new ultra innovation content hub exclusive to its customers, with an expected commercial launch later this year. It expects the product to generate significant revenues from subscriptions and boost customer loyalty.

Verizon Business announced a networking solution with Celona that will accelerate the use of private 5G to support business initiatives. Verizon’s On Site LTE and 5G solution provides customers an on-premises cellular wireless network to run critical business operations.

The expansion of Verizon’s C-Band coverage provides growth opportunities in broadband, with more than 150,000 net additions expected for fixed wireless access in first-quarter 2022.

Verizon expects to generate service and other revenue growth of around 3% in 2022. This excludes the impact of the sale of Verizon Media and the company’s ownership of TracFone.

Verizon’s investment in the 5G Ultra Wideband enables people to experience unmatched speed on their phones and in homes. Its disciplined network strategy for long-term sustainable growth and operational execution is noteworthy.

VZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearfield, Inc. (CLFD - Free Report) is a better-ranked stock in the telecom space, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 20.5% upward over the past 60 days.

Clearfield delivered a trailing four-quarter earnings surprise of 50.7%, on average. It has gained 112.2% in the past year.

Qualcomm, Inc. (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 12.2% over the past 60 days.

Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 27.5% in the past year.

Sierra Wireless, Inc. also carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.

Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has returned 18.4% in the past year.

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