Verizon Communications Inc. (VZ - Free Report) recently inked an agreement with the local administrative authorities of Lake Nona, FL, to deploy its 5G Ultra Wideband network across the 17 square mile Orlando community. The partnership is likely to enhance Lake Nona’s innovative ecosystem with Verizon’s advanced 5G application in transportation, healthcare and retail sectors.
The 5G Ultra Wideband network depends on three crucial factors to deliver the full potential of 5G technology. These include massive spectrum holdings, particularly in the millimeter wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy large number of small cells. The service boasts high throughput, low-latency and enhanced network coverage.
Markedly, the avant-garde 5G network will boost Lake Nona’s first autonomous shuttle service, Beep Inc., which plies on a single 1.2-mile route through the neighborhood. Launched in September 2019, the deal will help Beep to tap significant development opportunities in Central Florida with the incorporation of Verizon's 5G Ultra Wideband network in its fleet of vehicles. The vehicles are equipped with next-gen collision detection sensors in self-driving vehicles, which helps in avoiding accidents with improved route performance on a real-time basis.
The company has been actively developing various 5G solutions to increase pedestrian safety and avoid car accidents, which is likely to have a significant positive impact on smart vehicle technology. Last year, Verizon had deployed 5G Ultra Wideband network services in the Mcity Test Facility, which is the world’s first controlled hub, focusing primarily on intelligent transportation and autonomous vehicles.
Surpassing its target of deploying 5G network in 30 U.S. cities, the telecom bellwether aims to continue promoting next-gen 5G technologies nationwide to maintain its market share as the largest national wireless carrier. With intensifying competition, Verizon is seeking competitive edge in a saturated and price-sensitive market, which includes major players like AT&T Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) .
Verizon has been systematically investing in 5G to gain a foothold in the industry. Moving into 2020, with the ramp-up of 5G service across the country, the company expects to capitalize on the impending 5G boom and outsmart competition by using virtualized machines, advanced levels of operational automation and adaptability. Further, its focus on upgrading 5G network will result in the enhancement of Ultra Wideband speed, network performance and latency. The latest move is likely to strengthen its market position and enhance revenues.
Verizon has long-term earnings growth expectation of 3.2%. Driven by a solid momentum in the wireless business, the stock has inched up 1.8% compared with its industry’s rally of 10.5% in the past year.
Zacks Rank & A Key Pick
Verizon currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader industry is America Movil, S.A.B. de C.V. (AMX - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
America Movil has a long-term earnings growth rate of 17.2%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>