Verizon Communications Inc. (VZ) Balances Turnaround Initiatives With Ongoing Industry Competition

Verizon Communications Inc. (NYSE:VZ) is one of the best long-term stocks to invest in for retirement. On February 5, Verizon Communications Inc. (NYSE:VZ) confirmed that its consumer division chief, Sowmyanarayan Sampath, will step down at the end of the first quarter. His exit comes as the company embarks on a turnaround plan under the new CEO, Dan Schulman.

The company has already appointed Alfonso Villanueva, its executive vice president and chief transformation officer, to lead the consumer unit on an interim basis. Amid the turnaround push, Verizon has already confirmed plans to cut 13,000 jobs and convert 179 corporate-owned retail stores into franchised operations.

“We are at a pivotal moment, committed to enhancing customer experience and intensifying execution,” stated Schulman, who assumed the CEO position in October. “As we evolve and grow, changes in our organizational structure and leadership are anticipated.”

On February 2, Morgan Stanley raised its price target on Verizon to $49 from $47 while keeping an Equal Weight rating, noting the company’s updated outlook balanced aggressive market promotions with financial discipline. The firm’s EBITDA estimates remain largely unchanged, but its free cash flow forecast improved on lower capital spending.

Meanwhile, Verizon Wireless is suing T-Mobile over claims of false advertising, alleging that T-Mobile promised consumers more than $ 1,000 in annual savings if they switched cellphone carriers. According to the wireless carrier, T-Mobile exaggerated the savings claims by more than 100%. The lawsuit seeks unspecified treble damages for the alleged false advertising claims.

Verizon Communications Inc. (NYSE:VZ) is a leading global technology and communications provider. It delivers 5G and 4G LTE wireless services, Verizon Fios fiber-optic broadband, and, through its Verizon Business segment, offers IoT services, managed networking, and security solutions.

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Disclosure: None. This article is originally published at Insider Monkey.