Verizon Communications Inc. (NYSE:VZ) has for the past few years maintained a strong position in the mobile communications and broadband markets based on strong offerings but with the growing competition and changing technology fronts, one wonders how it will perform in the future.
Verizon is one of the major carriers in the U.S and as such, it serves one of the biggest telecommunications markets in the world. Its products are tailored for the wireless, business and residential markets and this market mix allows the U.S carrier to compete effectively with other rivals such as Sprint, AT&T, and T-Mobile. It is this market mix that places the company in an advantageous position that will most likely leverage growth and positive stock performance in the next few years despite the heavy competition from rival companies operating in the same market.
A growing market
There are numerous reasons why investors should have a positive outlook on the performance of Verizon’s stock. The first reason is the fact that the market is still growing. The company reported strong customer growth in its wireless market in 2017 after gaining about 1.2 million new subscribers in its postpaid service and 647,000 new phones in its prepaid service. The firms also reported that its customer retention was also impressive. The residential market was also characterized by significant growth as the demand for broadband connectivity due to high demand in residential areas. The same can be said for the business customers as cloud computing becomes more popular. The company expects growth to continue in the future for the following reasons, some of which have also been driving growth in the past year:
- Competitive pricing of its services
- High quality services delivered to customers such as fast internet speeds and clarity of telecommunication services.
- Strong offers that provide great value for what customers pay for.