Following the success of its first 5G incubator at Alley in New York City, Verizon Communications Inc. (VZ - Free Report) is working to expand the program to new places on the East and West Coasts. Notably, the company has decided to open new 5G-enabled labs in Washington, DC; Palo Alto, CA; Waltham, MA; and Los Angeles, CA. Notably, the labs will be opened by the end of this year.
These labs will aid in advancing new technology ideas and solutions as well as development of new 5G use cases. Equipped with live 5G networks, the labs will enable technology companies, local startups and universities to develop, test and improve 5G solutions. They will create a co-working experience for participants, which will aid them in exploration of test cases that will gain from high 5G speeds, ultra-low latency as well as huge bandwidth.
Earlier, the company had announced its decision to roll out 5G residential broadband service in Los Angeles, Sacramento, Houston and Indianapolis in the second half of 2018. Notably, the launch will make Verizon the first wireless technology services provider to deploy 5G residential broadband service and 5G mobile service in the United States.
Verizon has been aggressively forging ahead to expand its fiber optics networks to support 4G LTE and upcoming 5G wireless standards as well as wireline connections. Moreover, the company has an attractive fundamental outlook based on increasingly favorable growth prospects for its Wireless business and the possibility of improved performance from its Wireline operations. The company is likely to continue achieving growth and profitability with a focus on gaining share in the retail post-paid market, increasing penetration of smartphones, and selling more Internet devices such as tablets.
The company’s efforts to boost growth include improving operating and capital efficiency. Also, Verizon is looking forward to capitalize on the countless innovative technology solutions being developed in the Internet of Things and telematics ecosystem across multiple industries. Further, the company’s current focus on online content delivery, mobile video and online advertising should drive growth.
The Zacks Rank #3 (Hold) stock has returned 10.9% in the past six months against the industry’s decline of 0.2%.
However, the company’s Wireline division is struggling with persistent losses in access lines owing to competitive pressure from VoIP service providers and aggressive triple-play offerings by cable companies.
Stocks to Consider
Some better-ranked stocks in the same space are United States Cellular Corporation (USM - Free Report) , Telenav, Inc. (TNAV - Free Report) and Windstream Holdings, Inc. (WIN - Free Report) . While United States Cellular sports a Zacks Rank #1 (Strong Buy), Telenav and Windstream Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United States Cellular surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 303.56%.
Telenav outpaced estimates in each of the preceding four quarters with an average earnings surprise of 3.72%.
Windstream Holdings exceeded estimates twice in the preceding four quarters with an average earnings surprise of 23.50%.
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