Summary
- Improving consumer scene may have helped Communications Services companies like AT&T and Verizon.
- In Q2, AT&T shares have held upward momentum as VZ shares have sagged.
- Verizon ramps up 5G efforts, while AT&T pursues media strategy.
Verizon Communications Inc. (VZ) and AT&T Inc. (T), wireless industry competitors with diverging business strategies, are among the first major companies in the newly formed Communication Services sector to report this quarter. Investors will see if their revenue gets an expected boost, perhaps from the improving consumer scene.
VZ and T are the two largest wireless carriers in the U.S. by subscribers, and both stocks struggled after their previous quarterly reports. VZ is scheduled to report its earnings before the opening bell Tuesday, April 23, and T reports before the bell on Wednesday, April 24.
The Communication Services sector was created just a few quarters ago, combining companies that were in Info Tech and Consumer Discretionary with those from the old Telecom sector. With the mass amount of consumers in nearly nonstop contact with communications devices, companies here like VZ and T might consider the thriving consumer as a good sign for their bottom line. And a stronger than expected U.S. jobs report in March, which revealed the healthiest jobs scene in nearly 50 years, might help reassure investors about consumer confidence.
