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Will VZ's Growing Prowess in V2X Technology Boost Competitive Edge?

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Key Takeaways

  • VZ launches Edge Transportation Exchange for connected vehicles using 5G and edge compute tech.
  • The platform enables vehicle, pedestrian, and traffic signal communication in near real time.
  • Volkswagen and state agencies plan to adopt VZ's solution, signaling early traction in the V2X space.

Verizon Communications, Inc. (VZ - Free Report) recently introduced Edge Transportation Exchange a state of art mobile-network vehicle-to-everything (V2X) communication platform for connected vehicles. The cutting-edge solution incorporates Verizon’s industry-leading 5G, LTE mobile networks, Verizon 5G Edge mobile edge compute to enable vehicles to communicate and share important data with each other.

It also establishes connectivity with pedestrians and connected roadway infrastructure, such as traffic signals, in near real time. The solution also includes geolocation technology powered by Verizon Hyper Precise Location. It is a high-precision positioning technology offering up to centimeter-level accuracy. This cutting-edge feature suite can be a game changer in emerging automated and autonomous vehicle and IoT markets.

Verizon’s V2X communication platform supports a wide range of applications. It provides roadway and weather condition alerts and delivers intersection traffic-signal information. In addition, the solution can also be used for vulnerable road user awareness. Such capabilities can significantly improve traffic flow, reduce congestion and help drivers and pedestrians navigate safely. Moreover, its virtual architecture also eliminates the need for expensive physical roadside units, reduces financial burdens on municipal governments and the Department of Transportation.

Verizon operates in the highly competitive and saturated U.S. wireless market, where it competes with industry giants like AT&T, Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Intensifying competition with a relatively fixed pool of customers is putting pressure on pricing. Hence, Verizon’s proactive strategy to develop new use cases for its robust network portfolio beyond its traditional communication services market is commendable.

AT&T and T-Mobile are also aiming to expand into the emerging market of V2X. TMUS is steadily expanding its V2X technology, and it has deployed its network-based Cellular Vehicle-to-Everything (C-V2X) technology in the City of Bellevue to lower traffic fatalities. AT&T has also been working on the development of CV2X technology and has earlier collaborated with Ford, Nokia and Qualcomm in this regard. However, Verizon’s recently launched Edge Transportation Exchange has already gained solid market traction. Volkswagen Group of America, the Arizona Commerce Authority, the Delaware Department of Transportation, and Rutgers University CAIT are expected to adopt the solution. Hence, in the emerging market of V2X communication space, Verizon appears to have gained a competitive edge.

VZ’s Price Performance, Valuation and Estimates

Verizon has gained 5.8% over the past year compared with the Wireless National industry’s growth of 26.6%.

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Going by the price/earnings ratio, the company shares currently trade at 9.09 forward earnings, lower than 13.54 for the industry but above the stock’s mean of 8.94. It carries a Value Score of A.

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Earnings estimate for 2025 have remained stable at $4.69 over the past 60 days, while the same for 2026 has remained unchanged at $4.86.

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


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