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Will Verizon's Customer-Focused Approach Drive Sustainable Growth?
ZACKSยท 2025-06-26 17:15
Core Insights - Verizon Communications Inc. has launched AI-powered features aimed at enhancing customer experience, including the Verizon Customer Champion service utilizing Google Cloud's AI [1] - The company has redesigned its app and introduced features like AI-powered Verizon Assistant and Savings Boost to improve transparency and efficiency for users [2] - Verizon has expanded its retail presence significantly, opening 400 stores in two years, ensuring 93% of Americans are within 30 minutes of a store [2] - A three-year price lock guarantee for myPlan and myHome network plans has been introduced, aiming to attract and retain customers [3] - Verizon faces competition from AT&T and T-Mobile, both of which are also leveraging AI to enhance customer service [4][5][6] Company Developments - The launch of AI-driven features and app redesign is expected to improve customer control and service efficiency [8] - The three-year price lock strategy is designed to provide stability for customers amid economic challenges [3] - The expansion of retail stores aligns with a customer-focused strategy, supporting long-term growth [2] Competitive Landscape - AT&T is utilizing AI for network management and has introduced the AT&T Guarantee to address network outages [5] - T-Mobile is collaborating with OpenAI to develop the IntentCX platform, which aims to enhance customer interaction and issue resolution [6] - Verizon's growth of 2.7% over the past year is notably lower than the industry's growth of 23.9% [7] Financial Metrics - Verizon's forward price-to-sales ratio stands at 1.28, which is below the industry average, indicating potential valuation opportunities [10] - The Zacks Consensus Estimate for Verizon's earnings for 2025 has remained stable over the past 60 days, with no significant revisions [11][12]