**Editor's Note: Which is America's top wireless network? Click here to see what we discovered.**
Even as wireless prices fall, investing in Verizon Communications is wise because the company is set for “long-haul development."
So says website Guru Focus, which notes that Verizon’s stock grew approximately 7 percent after releasing its second-quarter earnings report. (It has since fallen back from $52 per share to about $49.)
The carrier was buoyed by acquiring the 45 percent of Verizon Wireless from Vodafone that it didn’t previously own. Also, it’s seen big increases in valuable postpaid wireless contracts and residential high-speed Internet. It’s all helped Big Red post double-digit profit gains in eight of the last nine quarters.
Add to all of that the pending launch of VoLTE/HD voice services and new investments in its FiOS, IP, security and cloud services.
Cash is another thing Verizon has going for it, Guru Focus noted. Operations cash in the past year is hovering around $39 billion, while free cash flow is almost $22 billion. That should help fund further investment in areas where it’s needed.
Comparing Verizon to its biggest rival, the site says, “AT&T's earnings are required to develop at a CAGR of 5.6 percent for the following five years, which is lower than Verizon's normal rate of 6.1 percent; hence, it is wise for investors to [invest] in Verizon as it looks set for long-haul development.
Competition among the big four wireless carriers is as heated as it’s ever been. Beyond AT&T and Verizon, T-Mobile is adding new customers faster than all of its rivals, and Sprint has money to spend since it’s been majority-acquired by cash-rich SoftBank of Japan.