Telecom Titans Face Off: Verizon and AT&T Gear Up for Q3 Earnings

As Verizon Communications Inc VZ and AT&T Inc T prepare to announce their third quarter earnings, a competitive showdown looms between these two major telecom companies.

Verizon: Gains Amid Optimistic Signals

Verizon is set to report on Tuesday. Analysts predict an earnings per share (EPS) of $1.18 and total revenues of $33.43 billion. Although Verizon’s year-to-date gains of 12.67% are less impressive compared to AT&T, its stock is displaying positive technical indicators.

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Currently trading at $43.81, Verizon’s stock is supported by its eight-day simple moving average (SMA) of $43.55. Its 50-day SMA is at $42.96, while the 200-day SMA stands at $41.05, suggesting a bullish trajectory in the near future.

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The Moving Average Convergence/Divergence (MACD) indicator at 0.12 reflects bullish momentum; however, a Relative Strength Index (RSI) of 51.77 signals a slightly overbought condition. Verizon’s acknowledgment of a $1 billion acquisition of spectrum licenses from United States Cellular Corp USM could enhance its competitive position and fuel future growth.

Despite this positive outlook, the stock is hovering around its 20-day SMA of $44.12, prompting caution among some analysts before the earnings announcement. Verizon will need to report solid numbers to sustain its upward momentum, particularly after securing a $3.3 billion agreement to lease wireless towers across the country, reinforcing its operational strength.

AT&T: Stock Climb and Key Agreements

On the other hand, AT&T has made a notable recovery, boasting a 26.23% increase in its stock price this year. The company is expected to report its earnings on Wednesday, with projected estimates of 57 cents EPS and revenues of $30.44 billion.

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AT&T’s stock is currently priced at $21.78, above its eight-day SMA of $21.55, 20-day SMA of $21.73, and 50-day SMA of $20.98, indicating strong buying interest.

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Similar to Verizon, AT&T is receiving positive technical signals, including a MACD of 0.16. The stock’s position within the upper range of its Bollinger Bands echoes a favorable sentiment among analysts.

Furthermore, AT&T recently secured agreements with the CWA, solidifying labor peace for over 23,000 workers and implementing a 19% wage increase for its Southeast employees. These developments lay a strong foundation for consistent operations as the company gears up for its earnings report.

Despite these advancements, a lingering question remains: can AT&T sustain its stock growth amid increased competition and slowing 5G growth rates?

Earnings Showdown: Who Will Prevail?

With both companies positioned in an advantageous position, their upcoming earnings results will be pivotal. Verizon’s recent strategic moves through spectrum deals and tower leases may provide long-term benefits, yet AT&T’s robust labor agreements and significant stock performance indicate it won’t easily relinquish its ground.

As these telecom giants prepare to reveal their earnings this week, all eyes will be on the outcomes. Will Verizon’s strategies lead to success, or can AT&T’s upward momentum push it further ahead?

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