Verizon Communications Inc. (VZ - Free Report) has partnered with Sirius XM Holdings Inc. (SIRI - Free Report) — a leading audio entertainment company — to deliver SiriusXM with 360L, SiriusXM’s latest entertainment platform to 10 Audi vehicles (2021 model) in the United States. SiriusXM with 360L revolutionizes the SiriusXM in-car audio entertainment experience by combining satellite and streaming delivery to give listeners access to more than 200 channels, on-demand audio and better personalization.
Headquartered in New York City, Verizon generated revenues of $131.9 billion in 2019. The company offers voice, data and video services and solutions on its networks and platforms, delivering on customers’ demand for mobility and reliable network connectivity. Verizon’s 4G LTE network powers SiriusXM with 360L’s streaming content by offering in-vehicle access to SiriusXM’s content in Audi models.
As a result, customers can tune into their favorite channels live via satellite while Verizon’s 4G LTE network enables them to access their favorite SiriusXM streaming. Verizon’s 4G LTE covers 327 million people that are more than 99% of the U.S. population. With one of the most efficient wireless networks in the United States, Verizon continues to deploy 4G LTE advanced technologies to deliver faster peak data speeds and capacity for customers. Verizon has been aggressively forging ahead to expand its fiber optics networks to support 4G LTE and 5G wireless standards.
Meanwhile, Verizon continues to capitalize on ample opportunities while underplaying competitive pressure. Its focus on upgrading the network will augment speed and performance for better customer service. The company aims to retain its lead in promulgating 5G mobile networks nationwide by using virtualized machines, advanced levels of operational automation and adaptability.
Verizon has upped the ante against rivals by launching the 5G Ultra Wideband network in multiple cities across the country. The 5G Ultra Wideband network hinges on three fundamental drivers to deliver 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. Verizon has systematically invested in 5G technology to strengthen its foothold in the industry.
The company expects to benefit from innovative technology solutions that are being developed in the IoT and telematics ecosystem across multiple industries. Verizon’s focus on online content delivery, mobile video and advertising are likely to drive growth.
Thanks to investment in 5G and Fiber strategies, Verizon’s shares have lost 5.1% compared with 12.1% decline of the industry in the past six months.
The company topped earnings estimates thrice in the last four quarters and missed the same in the remaining one quarter. It has a trailing four-quarter positive earnings surprise of 1.2%, on average. The stock is currently trading with a forward P/E of 11.9X.
Verizon has a dividend yield of 4.3% compared with 4.7% of the industry. The company has a long-term earnings growth expectation of 3.1% compared with the industry’s 9.4%.
Verizon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Turtle Beach Corporation (HEAR - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Plantronics, Inc. (PLT - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.
Plantronics has a trailing four-quarter positive earnings surprise of 27.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
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