Verizon Gains Momentum in the Wireless Vertical: Will it Persist?

Core Insights - Verizon Communications, Inc. is experiencing significant growth in 5G adoption and fixed wireless broadband, with 2.4 million wireless retail postpaid gross ads and 3.6 million wireless postpaid upgrades in Q1 2025 [1] - The company has a total of 2,035 MHz of spectrum, particularly benefiting from the C-band spectrum, which enhances coverage and speeds for 5G networks [2] - Strategic partnerships with companies like Ericsson, Qualcomm, Samsung, and MediaTek are enhancing Verizon's 5G capabilities, achieving uplink speeds of 480 Mbps and download speeds of 5.5 Gbps [3] Competitive Landscape - Verizon faces competition from T-Mobile and AT&T in the wireless industry [4] - T-Mobile's 5G network covers 98% of the U.S. population, utilizing mid-band 2.5 GHz spectrum for extensive coverage and fast speeds [5] - AT&T's 5G network currently covers 295 million people, employing millimeter wave spectrum in dense areas and mid/low-band spectrum in suburban and rural regions [6] Financial Performance and Valuation - Verizon's stock has gained 8.8% over the past year, while the Wireless National industry has grown by 28.3% [7] - The company is advancing its 5G footprint through spectrum depth and collaborations, but its earnings outlook has softened, with valuation below sector averages [8] - Verizon's shares currently trade at a price/earnings ratio of 9.05, lower than the industry average of 13.34 but above its historical mean of 8.95 [9] - Earnings estimates for 2025 have declined by 0.21% to $4.69, while estimates for 2026 remain unchanged at $4.86 [10]