Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Verizon Communications Inc. (VZ) Destined for Greatness?

Verizon is also promising to deploy voice-over-LTE, or VoLTE, which has been a long time coming and has seen numerous delays. The company had initially planned commercial deployment of VoLTE in 2012, but subsequently pushed it back to 2013. However, the company has recently announced that VoLTE wouldn’t launch until early 2014. If its history of delays is any indication, investors may not want to hold their breath for a 2014 roll-out, either.

Verizon’s potential buyout of Vodafone Group Plc (ADR) (NASDAQ:VOD)‘s stake in the companies’ joint wireless venture could make it difficult to accurately assess Verizon’s long-term outlook. Verizon has long been trying to resolve underlying control issues with the British telecom powerhouse, which owns a 45% stake in Verizon Wireless. There have even been talks of Verizon buying Vodafone Group Plc (ADR) (NASDAQ:VOD)’s stake outright in the world’s largest leveraged buyout. This would leapfrog Verizon over many competitors in the global telecom race, but at the price of adding a massive debt overhang to its already hefty debt commitments.

The U.S. mobile market appears to have peaked, as networks added only about 200,000 postpaid subscribers, and about 1 million no-contract customers in the first quarter. The market is effectively supersaturated with more than 300 million mobile subscriptions. Growing at this point means stealing market share from somebody else, but that doesn’t mean the end of stronger business in the sector, as service revenues increased by 14% year over year. Verizon and AT&T account for 70% of mobile sales, but only 66% of subscribers, so there is at least some pricing power left in having a leadership position.

Putting the pieces together
Today, Verizon has few of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Verizon Destined for Greatness? originally appeared on

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends Vodafone.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.