Will the Rising Adoption of O-RAN System Propel VZ's Stock Growth?

Verizon Communications Inc. VZ recently announced that it has deployed an Open RAN-based Distributed Antenna System (DAS) at the Austin Convention Center and the University of Texas to deliver reliable 5G services. This marks the first commercial deployment of the DAS systems with multi-vendor interoperability using O RAN interfaces in the Verizon network.In recent deployments, Samsung virtualized Distributed Unit (vDU) was utilized in conjunction with Commscope DAS connected through an O-RAN interface. This advanced setup facilitates the delivery of Verizon’s 5G Ultra-Wideband services, ensuring high-speed, reliable Internet availability in the venues. The solution eliminates the need for RF equipment, thus lowering the power consumption, space requirements and need for cooling systems. This ensures significant cost reduction compared to legacy setups.Over the last few years, Verizon has shifted toward cloud-based architecture, virtualization and O-RAN integration. Verizon’s aggressive adoption of O-RAN standards has played a key role in its network evolution. The company has been a pioneer in fostering O-RAN implementations in commercial environments, with around 130,000 O-RAN capable radios already deployed across its network.Will These Developments Drive VZ’s Share Performance?The open framework of O-RAN eliminates the risk associated with vendor lock-in and allows customers to choose from the best components from different suppliers as per their requirements. This optimizes operators' expenses. It also opens up market opportunities for new entrants, creating a healthy competitive environment that accelerates innovation. The deployment flexibility, scalability and cost-saving attributes are driving the O-RAN adoption and investments in Open RAN are expected to grow substantially in upcoming years. Verizon is well-positioned to capitalize on this emerging market trend.Moreover, the successful deployment of O-RAN-based DAS systems serves as a testament to Verizon’s industry-leading network portfolio. This achievement is laying the foundation for the broader adoption of multi-vendor, interoperable networks in highly demanding venues such as stadiums, airports and more.VZ’s Stock Price PerformanceShares of Verizon have gained 14.1% over the past year compared with the industry’s growth of 37.7%.Image Source: Zacks Investment ResearchVZ’s Zacks Rank and Key PicksVerizon currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader industry have been discussed below.Zillow Group, Inc. ZG carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor. InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.Workday Inc. WDAY carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Verizon Communications Inc. (VZ): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Workday, Inc. (WDAY): Free Stock Analysis Report Zillow Group, Inc. (ZG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks