In a concerted effort to expand its product offering and augment cybersecurity platform, Verizon Communications Inc. VZ recently completed the acquisition of ProtectWise, Inc. for an undisclosed amount. The transaction is likely to facilitate Verizon to build an ecosystem that enables superior endpoint-to-network visibility and eliminate threats.
Based in Denver, CO, ProtectWise offers cloud-delivered Network Detection & Response to detect and promptly respond to security threats. Leveraging advanced analytics in enterprise, cloud and industrial environments with real time and retrospective detections, it provides an additional layer of security cover. Seamlessly integrating with other existing security products, it focuses on the network level to observe attacks and trace them back to the source, considerably reducing the time to detect and respond to these.
Verizon aims to tap these functionalities to improve its capacities and capabilities as it expands 5G footprint. The acquisition will further help the company to boost its enterprise security portfolio, underscoring the ease and cost-savings of an on-demand deployment model for consolidated multiple, disconnected point products.
With one of the most efficient wireless networks in the United States, Verizon continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. The company has been aggressively forging ahead to expand its fiber optics networks to support 4G LTE and upcoming 5G wireless standards as well as wireline connections. Backed by these initiatives, the company has reportedly generated 1.2 million retail postpaid net additions in fourth-quarter 2018 with phone churn rate of 0.82%, indicating continued strong customer loyalty.
Moreover, Verizon has an attractive fundamental outlook based on increasingly favorable growth prospects for its Wireless business and the possibility of improved performance from its Wireline operations. Verizon will continue to achieve growth and profitability with a focus on gaining share in the retail post-paid market, increasing penetration of smartphones, and selling more Internet devices such as tablets. Management also remains bullish on the company's ability to grow revenues from smartphones, tablets and cloud computing, and has reiterated its earlier guidance.
Verizon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Gogo Inc. GOGO and GCI Liberty, Inc. GLIBA, carrying a Zacks Rank #2 (Buy) and Telenav, Inc. TNAV, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gogo beat earnings estimates in each of the trailing four quarters, the average being 34.4%.
GCI Liberty is currently trading at a forward P/E of 124.6x.
Telenav beat earnings estimates in each of the last four quarters, the average being 23.7%.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
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