ZACKS·2026-02-12 15:46Industry Overview - The Zacks Wireless National industry is facing challenges such as high capital expenditures for infrastructure upgrades, tariff uncertainty, supply-chain disruptions due to geopolitical tensions, and high customer inventory levels [1][6] - Despite these challenges, the industry is expected to benefit from accelerated 5G deployment and extensive fiber densification in the long run [1] Key Players - Verizon Communications Inc. is likely to gain from increased demand for scalable infrastructure, focusing on 5G mobile networks and fixed wireless broadband [2][14] - AT&T Inc. is benefiting from fiber convergence and increased deployment of mid-band spectrum, with a commitment to closing the digital divide [2][16][17] - Liberty Latin America Ltd. is positioned to leverage its end-to-end communications platform and upgraded infrastructure for enterprise-grade connectivity [2][20] Financial Performance - The Zacks Wireless National industry has underperformed the S&P 500 and the broader Zacks Computer and Technology sector, declining 7.8% over the past year compared to the S&P 500's growth of 15.9% [9] - The industry is currently trading at a trailing 12-month EV/EBITDA of 9.03X, significantly lower than the S&P 500's 17.21X and the sector's 19.40X [12] Market Dynamics - Increased infrastructure spending is eroding short-term profit margins due to aggressive promotional expenses and a decline in linear TV subscribers [4] - The deployment of 5G and fiber networks is expected to enhance customer experience with improved coverage and speed, driven by advancements in technology [5] Investment Outlook - Verizon has a long-term earnings growth expectation of 4.8% and has gained 20.8% in the past year, currently holding a Zacks Rank 3 (Hold) [14] - AT&T has a long-term earnings growth expectation of 11.7% and has gained 12.2% over the past year, also holding a Zacks Rank 3 [17] - Liberty Latin America has gained 11.6% in the past year and holds a Zacks Rank 2 (Buy) [20]