Three industry behemoths have risen to unmatched competitive levels in industries driven by the rapid pace of technological innovation. Today, we’ll unveil the strategies of three value stocks as they chart unique paths to success in the ever-evolving realms of telecommunications and entertainment.
The article explores three company’s distinctive approaches that have set them on the path to multiplying their market valuations through rapid growth.
Verizon (VZ)
Verizon’s (NYSE:VZ) deployment of the C-band spectrum is a network expansion investment vital to its growth strategy. The investment enhances network capacity and enables Verizon to provide high-speed broadband and 5G services across the country.
Verizon is a leader in providing cutting-edge connectivity with a high-capacity service focus. C-band deployment has also seen an increase in customer retention, with lower churn rates and an increase in premium plans. The myPlan framework offers flexible pricing, allowing customers to start at different price points and upgrade over time, increasing customer acquisition and retention.
Despite concerns in the industry about rising prices, Verizon has managed to increase its average revenue per account (ARPA) by an impressive 6% YoY. This rise in ARPA indicates customers are willing to pay more for Verizon’s services, making it a top contender on the list of value stocks.
Finally, the strategy behind this price increase combines passive and active measures. Passive price increases involve charging more for existing services. However, Verizon’s success extends to active price increases as well. For instance, Verizon has effectively implemented active price-ups in the fixed wireless access business and selling non-connected services.
Paramount (PARA)
Paramount’s (NASDAQ:PARA) prowess in the streaming space makes it a top option in value stocks. The service has successfully integrated with Showtime, creating a stronger product with a lower churn rate and higher price points. This integration enhances consumer engagement, attracts new subscribers and ultimately boosts cost savings across the platform.
Paramount+ with Showtime is a multi-platform product offering linear and streaming options, aligning with changing consumer behavior. Giving customers a choice on how they access the content is a significant advantage. It allows Paramount to grow its subscriber base through linear and streaming, and it also provides potential for cross-promotion, increasing overall brand visibility.
Furthermore, Paramount has shown substantial growth thanks to its price increases and advertising. Additionally, the company’s strategic international expansion reduces subscriber acquisition costs and boosts awareness of Paramount+ and Showtime.
The company has leveraged its digital ad business, reaching 90 million monthly users in the US. This impressive reach is supported by premium content and data integration, providing advertisers with an attractive platform to connect with their audience.
AT&T (T)
One of the most significant indicators of AT&T’s (NYSE:T) strength is its ability to attract and retain customers. AT&T has achieved over 8 million postpaid net additions in the wireless business in the last three years. This demonstrates the company’s proficiency in acquiring new customers and keeping them satisfied, an ideal trait in value stocks.
Fundamentally, AT&T’s strategic flexibility is a core strength. This adaptability includes shifts in distribution channels, marketing strategies and product bundling, which all contribute to the company’s ability to thrive in various market conditions.
Notably, AT&T’s convergence strategy, involving the integration of fixed and mobile networks, enables the company to offer seamless and integrated services to customers. By combining fixed and mobile networks, AT&T enhances the customer experience and operational efficiency.
AT&T’s ownership of WarnerMedia (NASDAQ:WBD) and its content portfolio is a unique strength that provides the company with a competitive edge. The content offerings, such as HBO Max and Warner Bros movies, create synergies within the organization by bundling content with its telecommunications services. Therefore, integrating content into AT&T’s services is a qualitative and quantitative strength, enhancing the value proposition for customers.
As of this writing, Yiannis Zourmpanos held long positions in VZ, PARA and T. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
