Verizon (VZ) to Upgrade FAA Telecom Network Infrastructure

Verizon Communications Inc. VZ recently secured a $2.4 billion Federal Aviation Administration Enterprise Network (FENS) contract to modernize FAA’s (Federal Aviation Administration) existing telecommunication infrastructure. Per the 15-year deal, Verizon will design, deploy and maintain next-generation robust network functionalities that will ensure smooth digital transformation and improve the operational excellence and management of the national airspace system.

Air transportation is an integral part of modern life and the air traffic system must continuously operate at an optimum level to support millions of passengers and freight transportation on a daily basis. Even a slight mistake can have severe consequences. Verizon’s next-generation technology will mitigate the risk of unforeseen events, allow prompt action and enhance passengers’ air and ground safety. It will boost the resilience of mission-critical network applications and will support 45,000 flights and 2.9 million airline passengers in the nation’s Air Traffic Management.

Per the agreement, Verizon will offer high bandwidth connectivity, network security management and enhanced network engineering. Additionally, dynamic service provisioning combined with more significant insights and visibility of overall network operations will enable better configuration management according to situational requirements. Successful deployment of the capabilities will streamline aviation operations, improve productivity and ensure a better consumer experience.

Verizon is witnessing significant 5G adoption and fixed wireless broadband momentum. The telecom giant plans to accelerate the availability of its 5G Ultra-Wideband network nationwide. The company’s growth strategy includes 5G mobility, nationwide broadband and mobile edge computing and business solutions. Verizon is building the entire network infrastructure and ecosystem to provide customers with the most amazing 5G experience. It continues to deploy Home Internet service in select cities, where users can experience a maximum download speed of up to 1 Gbps. The company offers the best of LTE and 5G Ultra-Wideband facilities with On Site 5G — a transformative on-premises, private 5G network — for business enterprises. Verizon’s 5G mobility service offers an unmatched experience that impacts industries as diverse as public safety, health care, retail and sports.

The company holds more than 2.035 MHz spectrum with the acquisition of C-band spectrum — 294 MHz in Sub 6 GHz spectrum (low and mid-band) and 1.741 MHz of mmWave spectrum (high band). The low band spectrum (nationwide 700 MHz licenses and 850 MHz spectrum) continues to provide the best 4G LTE experience in the industry and supports nationwide 5G service, giving customers in more than 2,700 markets access to 5G. Verizon’s mmWave footprint delivers game-changing experiences for the densest parts of the network and offers highly-predictable signal waves leading to greater efficiency and less interference.

The stock has declined 25.9% in the past year compared with the industry’s decline of 14.6%.

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

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

Viavi Solutions Inc. VIAV, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 9.10%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 27.27%. Viavi is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe.

Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics. The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle, fueled by the transition of OEMs and service providers to superfast 5G networks.

Arista Networks, Inc. ANET, sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

It continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.

Juniper Networks, Inc. JNPR, carrying a Zacks Rank #2, delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on solid demand across end markets.

Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe.

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