Verizon Will Shoot Higher On New U.S. Army Project

When a stock gets oversold, it suggests one thing - sheer imbalance between supply and demand with bias toward the former. Verizon has shocked shareholders and prospective investors afterwards slipping into this dreaded territory. All said I have unfaltering convictions that this telecommunication behemoth is packing serious heat in accordance with the hood, as it were. Verizon Communications extends a diversified service package that encompasses various entertainment, communication and informational services to different consumers.

Divided into two segments, the wireless and wireline, this telecommunication heavyweight rests on a market cap of $105.5 billion. Its main competitors are Sprint Nextel and AT&T. The latter, all in all, poses more threat to Verizon. It not only has a bigger market cap, however also spreads its umbrella over a wider field.

I believe that shareholders will lose faith in AT&T and cross borders to Verizon. AT&T has outpaced Verizon's subscriber growth in the cable market in the latest reportable quarter. Nevertheless, AT&T's phyrric victory is due to Verizon's continued build-out of its FiOS all-fiber network. Verizon all in all has more total subscribers versus AT&T. Once investors see that consumers prefer Verizon's superior offerings they will follow into the stock as revenue increases. In the same breath, Verizon has doubled its efforts, and I foresee an increased faith in its stock. Apart from the inevitable increase in demand, the market will as well signal a green light to Verizon, allowing it to venture into more rewarding investments and projects. From my own knowledge, accommodating more risks inevitably increases share value as anticipation pushes the market to the edge of its seat.

Some other shred of news that may evenly prove of help in enhancing Verizon's share value is the recent revelation of Verizon's role in steering the U.S army toward cloud computing. This move comes at the wake of an increased need for a secure and cost-effective network platform for the U.S. army. Officials say that the current economy is sluggish and the need for an overhaul of cost effectiveness cannot be overstated.

The multiple contract deal is estimated to pool a host of awardees who will all have a stake on the $249 million project. Considering the decisive role that Verizon plays in this project, I presume that it is going to bring in a reasonable amount of revenue from the deal, which will furthermore strengthen Verizon's position.

According to recent report findings, there has been an unprecedented plunge in landline revenue throughout the U.S. The United States is the primary market for AT&T and Verizon. Both parties have suffered subscriber losses. It seems as if the first punch landed on Verizon. Its revenue in the landline frontier has fallen by 19% compared with AT&T's 16.5%. Instead of reeling from this Verizon has enhanced its efforts elsewhere to compensate - previously than AT&T. This is evident from the recent contract to steer the U.S army toward cloud computing. Verizon is the key player in other words migrating communications to its private network.