Back to top

Verizon to Build Next-Generation Global Network for SAP

Read MoreHide Full Article

Verizon Communications Inc. (VZ - Free Report) recently announced that it has been selected by SAP SE (SAP - Free Report) to build the latter’s next-generation global network infrastructure. SAP is a Germany-based multinational software corporation that makes enterprise software to manage business operations and customer relations.

SAP is planning to have a secure platform to improve support for customer-facing applications and provide a better user experience to its employees and customers. To that end, Verizon will integrate SAP’s global network infrastructure for easier and more cost-effective network management. Verizon’s innovative network solutions will help SAP to build a future-ready infrastructure that will support exponential growth of its cloud business.

In the past, SAP’s in-house team maintained its global IT real estate holdings with a number of vendors to provide services. Owing to the significant growth of its cloud business, SAP decided to consolidate management of its global network environment using next-generation network technologies. The new approach, driven by SAP’s increasing reliance on the cloud, is to have an outsider create the network and thus free its workforce for customer-centric jobs.

Verizon was selected due to its global reach, secure and high capacity global network capabilities. It will consolidate management of SAP’s global network. Verizon was a previous technology partner of SAP. The company is now working with SAP in two key projects. First, it is developing a new global network to link SAP’s offices around the world, which includes voice and data services. Second, Verizon is providing scalable and secure Internet connectivity to connect SAP’s customer-facing data centers around the globe.

Verizon has an attractive fundamental outlook based on increasingly favorable growth prospects for its Wireless business. The company is seeking mobile hotspot and home-based fixed wireless for initial deployment of the next-generation 5G wireless networks in the United States in 2018.

Over the past three months, the stock has returned 13.4% compared with 10.6% growth for the industry.

Verizon currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include United States Cellular Corp. (USM - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and AT&T Inc. (T - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

United States Cellular has a long-term earnings growth expectation of 1%. It surpassed earnings estimates thrice in the trailing four quarters with an average positive surprise of 303.6%.      

AT&T has a long-term earnings growth expectation of 3.6%. It surpassed earnings estimates twice in the trailing four quarters with an average positive surprise of 5.9%.     

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

More from Zacks Analyst Blog

You May Like

Published in