Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 6, 2024

Article Excerpt

VERIZON COMMUNICATIONS INC., $41.15, New York symbol VZ, is a buy. The telecom provider is the second-largest wireless carrier in the U.S. after AT&T, with 114.2 million consumer cellphone subscribers. It also sells traditional telephone lines, high-speed Internet and TV services. This week, the company agreed to acquire Frontier Communications Parent Inc. (Nasdaq symbol FYBR) in an all-cash deal valued at $20 billion. To put that cost in perspective, Verizon’s market cap (the total value of all outstanding shares) is $173.9 billion. Frontier provides high-speed Internet access through fibre-optic lines to 2.2 million subscribers across 25 states. The purchase will expand the reach of Verizon’s fibre network to 25 million premises across 31 states and Washington, D.C. Expanding its high-speed Internet service will also help Verizon attract and retain mobile phone customers with discounted service bundles. Assuming Frontier shareholders and regulators approve, Verizon should complete the purchase in late 2025. It also expects eliminating overlapping operations will let it cut $500 million from its…