HomeMost PopularThe Verizon Saga: Surging 8% Year-to-Date Amidst 5G Momentum

The Verizon Saga: Surging 8% Year-to-Date Amidst 5G Momentum

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Rejuvenation in the Face of Adversity

Verizon (NYSE:VZ), a stalwart in the wireless communication realm, is carving its path to success in 2024. With an admirable 8% stock uptick year-to-date and a resilient 34% recovery from mid-2023 lows, the company is not taking any setbacks lying down. The Q4 2023 results exceeded expectations, setting a positive tone for the future. Although revenue dipped by 0.6% compared to the previous year, Verizon remains ahead of the curve by showcasing impressive numbers.

Pioneering the 5G Frontier

Verizon, once perceived as lagging in 5G mid-band spectrum against competitors like T-Mobile, is now stepping up its game. By strategically acquiring and deploying new C-band spectrum, the company is efficiently narrowing the gap and gaining traction. The recent addition of 449,000 postpaid phone customers in Q4 2023 solidifies Verizon’s resurgence in the highly competitive 5G arena.

Diversification Breeds Success

Furthermore, Verizon’s foray into the fixed wireless broadband sector has been met with enthusiasm by consumers seeking flexibility and cost-effectiveness. With an additional 375,000 fixed wireless broadband connections in the last quarter alone, Verizon’s subscriber base now exceeds 3 million users. The introduction of the myPlan program, allowing customers to customize their mobile phone plans with various features, is a hit among consumers – a move that could significantly boost per-user revenues and margins.

Trials and Triumphs in the Stock Market

However, on the stock market front, Verizon has faced its share of challenges. With a steep 35% decline from early 2021 levels to around $40 presently, VZ stock has lagged behind the S&P 500 over the past three years. Despite underperforming the market in 2021, 2022, and 2023, Verizon remains steadfast in its pursuit of growth and adaptation in a rapidly evolving landscape.

Looking Towards the Future

Although uncertainties loom large in the macroeconomic environment, including soaring oil prices and heightened interest rates, Verizon stands poised for a potential resurgence. Trading at a modest 9x consensus 2024 earnings and boasting a generous forward dividend yield of over 6%, Verizon remains an attractive investment prospect. With a promising future fueled by expanding 5G coverage and a massive customer base exceeding 120 million, Verizon is well-positioned to chart a course towards sustained success.

Returns Mar 2024
MTD [1]
YTD [1]
Total [2]
VZ Return 2% 8% -23%
S&P 500 Return 2% 9% 132%
Trefis Reinforced Value Portfolio 0% 5% 645%

[1] Returns as of 3/27/2024
[2] Cumulative total returns since the end of 2016

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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