Verizon Reinforces Mission to Eliminate Carbon Footprint
Advocating climate change, Verizon Communications Inc.’s VZ, chairman & CEO, Hans Vestberg, has reaffirmed the company’s commitment to end carbon emissions in its operations by 2035. The telecommunications and media giant generated revenues of $130.9 billion in 2018. It is scheduled to report fourth-quarter 2019 results on Jan 30, before the opening bell.
Headquartered in New York City, Verizon plans to achieve this goal through a combination of reducing emissions, migrating energy procurement in favor of clean energy, and carbon offsets. Its connected solutions help customers to save energy and reduce their carbon emissions. The company is working toward sourcing renewable energy equivalent to 50% of its annual electricity consumption by 2025.
Verizon has vowed to set a Science-Based emissions reduction Target by September 2021 to strengthen its commitment for a greener planet, in accordance with the Paris Agreement. Notably, Verizon was the first U.S. telco to issue a green bond, with funds from the $1 billion bond targeting renewable energy, green buildings, sustainable water management and biodiversity conservation.
Having launched its sustainability program in 2009, Verizon has been delivering the promise of the digital world by empowering people to generate innovation and positive change. It aims to recycle five million pounds of electronic waste by 2022. It intends to reduce 15% water consumption by 2025 and plant 10 million trees by 2030.
Coming to its core business, Verizon’s 5G Ultra Wideband mobility service is currently available in select locations in Cleveland and Columbus, OH, and Hampton Roads, VA. At the end of 2019, the company launched its service in 31 cities, 15 NFL stadiums and four indoor arenas. With the ramp-up of 5G service across the country, Verizon is well positioned to optimize ample opportunities while underplaying competitive pressure.
Further, its focus on upgrading network is likely to augment speed and performance for better customer service. The company aims to retain its lead in promulgating 5G mobile networks nationwide by using virtualized machines, advanced levels of operational automation and adaptability.
The Zacks Rank #3 (Hold) stock, with a market cap of $248.7 billion, impressed investors with its recent earnings streak. It topped estimates in the trailing four quarters, the beat being 2.2%, on average. The Zacks Consensus Estimate for Verizon’s current-year earnings has been revised 0.4% upward over the past 90 days to $4.83.
Shares of Verizon have added 12.5% compared with 7.8% growth recorded by the industry in the past two years. The stock is currently trading with a forward P/E of 12.15X.
Investors who are looking for solid profits in 2020 may consider some better-ranked stocks in the broader industry. These include Sogou Inc. SOGO, Paylocity Holding Corporation PCTY and Chegg, Inc. CHGG.
While Sogou and Paylocity sport a Zacks Rank #1 (Strong Buy), Chegg carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sogou has a long-term earnings growth expectation of 20.2%.
Paylocity topped earnings estimates in the trailing four quarters, the surprise being 18.9%, on average.
Chegg surpassed earnings estimates in the trailing four quarters, the beat being 49.4%, on average.
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