Can Verizon's Strong Automotive Connectivity Solutions Drive Growth?

Verizon Communications Inc. VZ offers smart technology solutions for the automotive sector that enable fast information sharing and seamless connectivity for the intelligent transport system. The company has collaborated with major automobile manufacturers, such as General Motors, Ford and Toyota, for connected vehicle and in-car connectivity solutions.

Verizon’s automotive portfolio includes a vehicle-to-everything (V2X) communication platform that enables vehicles to share real-time information with other cars, roads and pedestrians. Super-fast 5G networks help reduce accidents, improve traffic flow and increase driver awareness. Its partnerships with companies like Volkswagen Group show the growing role of telecom companies in automotive innovation.

In the electric vehicle (EV) sector, Verizon helps transport companies track battery performance, plan routes more efficiently, and manage charging systems. These data-based solutions help reduce costs and support more energy-efficient operations. The company also supports the growth of autonomous and software-defined vehicles, which rely on software, cloud services and constant data exchange. Its edge computing solution processes data closer to the vehicle, allowing faster decisions that are important for self-driving technology.

How Are Competitors Performing in the Automotive Industry?

Verizon faces stiff competition from AT&T, Inc. T and T-Mobile, US, Inc. TMUS. AT&T is helping make vehicles more connected and smarter through its 5G network and digital solutions. It works with companies like Toyota and Mitsubishi Motors to provide better Internet, navigation and in-car features. The company is also developing new technologies like artificial intelligence (AI)-based entertainment and connected car services.

T-Mobile is working in the automotive industry by providing 5G connectivity for connected and smart vehicles. It is developing technologies like edge computing and advanced network platforms to support real-time data and autonomous driving. T-Mobile has partnered with major automakers to provide connectivity, data services and smart features for modern vehicles.

VZ’s Price Performance, Valuation & Estimates

Verizon has gained 16% over the past year against the industry’s decline of 4.5%.

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Going by the price/earnings ratio, the company’s shares currently trade at 9.87, lower than the 12.86 for the industry.

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VZ’s earnings estimates for 2026 have increased 1.9% to $4.91 per share, while the same for 2027 have increased 1.7% to $5.26 over the past 60 days.

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Verizon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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