12 Best Edge Computing Stocks to Invest in According to Analysts

6. Verizon Communications Inc. (NYSE:VZ)

Average Analyst Upside: 15.48%

Number of Hedge Fund Holders: 57

Verizon Communications Inc. (NYSE:VZ) is a global leader in communication, technology, and entertainment services. Through its Consumer and Business segments, the company offers a wide array of products and services, including wireless and wireline solutions, fixed wireless access (FWA) broadband, IoT offerings, and more.

On December 17, Verizon Communications Inc. (NYSE:VZ) announced a new AI-powered solution developed in collaboration with Nvidia Corp. This innovation enables a variety of AI applications to operate seamlessly over Verizon’s secure 5G private network with private Mobile Edge Compute (MEC). The plug-and-play AI-powered private 5G platform is designed to support third-party developers in driving innovation while remaining adaptable to future advancements in AI and connectivity.

That same day, Raymond James reaffirmed its positive outlook on Verizon Communications Inc. (NYSE:VZ), maintaining an Outperform rating with a $48.00 price target. The firm highlighted Verizon’s strong long-term fundamentals, consistent performance, and attractive dividend yields as key factors for its appeal. For the fourth quarter, Raymond James forecasts conservative postpaid phone net additions of 350,000 in the consumer segment. Meanwhile, business growth expectations are slightly lower due to fewer selling days, with the forecast holding steady at 126,000 net additions.

Third Point Management stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:

“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”