VZ Enhances Network Resilience for Winter Storm: Will it Drive Growth?

Verizon Communications, Inc. VZ recently announced that it has taken several initiatives to ensure consistent connectivity during harsh winter environments. Snow, freezing rain and power outages caused by winter storms heavily impact connectivity across a large part of the United States during this time of the year. This affects business activities and halt other essential operations in several regions.

Verizon have improved cell sites and infrastructure across the nation for the winter season. The company’s mobile asset fleet boasts nearly 3,000 network and satellite assets. This includes temporary emergency command centers, mobile generators and mobile cell sites. If the fiber connection is disrupted, Verizon’s fleet of nearly 400 satellite-linked portable assets will restore service.

Moreover, to maintain connectivity during a power outage, Verizon has made provisions for backup battery power for its macro cell sites. The company is conducting proactive maintenance for the backup batteries and generators throughout the year to ensure their optimum functionality. Verizon’s network facilities are engineered to perform under extreme conditions. The company has deployed the Verizon Frontline Crisis Response Team for 24/7 support to mission-critical communication for public safety agencies, first responders and affected communities.

The Winter Storm Fern has already passed through the country, causing power outages in several areas. The Winter Storm Gianna is developing and expected to affect the U.S. East Coast and the Southeast. Amid this situation, Verizon’s strong emphasis on improving its network and focus on disaster preparedness highlights its customer-oriented business strategy. Such an approach bodes well for driving customer growth in the long run.

How Are Competitors Faring?

Verizon faces competition from AT&T, Inc. T and T-Mobile, US, Inc. TMUS in the telecom space. AT&T has effectively improved network resilience for winter storms. It has already made provision for portable generators and Network Disaster Recovery personnel in regions expected to be impacted by the upcoming storm, Gianna. Moreover, AT&T FirstNet Response Operations Group is on standby and always ready to support communications to public safety operations and deploy backup solutions.

T-Mobile is proactively mitigating disruption caused by winter storm Fern and also boosting network readiness for the upcoming storm. Its emergency technicians and field team are actively working on the ground to deliver backup power solutions to areas that are impacted. It uses an AI-driven Self-Organizing Network that automatically adjusts routing and optimizes network coverage in real time during extreme weather conditions. T-Mobile also has a satellite backup layer in collaboration with Starlink, which offers direct-to-device messaging options.

VZ’s Price Performance, Valuation and Estimates

Verizon has gained 1% over the past year against the Wireless National industry’s decline of 11.2%.

Going by the price/earnings ratio, the company’s shares currently trade at 8.24, down from 11.3 for the industry.

VZ’s earnings estimates for 2025 and 2026 have declined over the past 60 days.
 

Verizon currently carries a Zacks Rank #4 (Sell).

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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