Verizon Networks, Inc. VZ recently announced that Knightscope, a renowned developer of autonomous security robots, has opted to utilize VZ’s industry-leading network portfolio. Notably, Knightscope has received endorsement from the U.S. Department of Veterans Affairs ("VA") for its security offerings. The partnership agreement with Knightscope aligns with Verizon’s long-term vision to expand its commercial footing in public-safety space and deepen its partnership with the U.S. Department of VA.

In 2023, the telecom enterprise secured a nine-year contract valued at $448.3 million with the VA. Per the deal, Verizon Networks will provide critical communication support for the VA’s disaster recovery missions, supply mobile devices and enhance connectivity at VA medical centers and healthcare facilities.

The K5 Autonomous Security Robot is engineered for continuous patrol in a large outdoor environment, with features such as autonomous navigation, real-time data transmission and self-charging capabilities. To support the robot’s independent operation and continuous surveillance functions, Knightscope will deploy Verizon 4G LTE connectivity. Knightscope Security Operations Center interface integrated with VZ’s network services will also provide comprehensive security visibility with improved audio, video and warning systems.

Knightscope’s K1 Blue Light Tower and Blue Light E-Phones, wireless emergency communication devices, will assist first responders utilizing Verizon's network. Moreover, it will also empower Knightscope to provide one-touch access to emergency services such as police, fire, hospitals and more.

Will This Venture Drive VZ’s Share Performance?

Demand for advanced security systems is expected to grow at a substantial rate as several government and commercial facilities are aiming to elevate their security posture. Amid this backdrop, Verizon Networks’ strategy to diversify its business beyond traditional telecom offerings into broader sectors such as public safety can be a key growth driver. The collaboration with Knightscope will strengthen its position as a key technology partner for public safety clients.

VZ’s Stock Price Performance

Shares of Verizon Networks have gained 13.5% over the past year compared with the industry’s growth of 38.3%.

Image Source: Zacks Investment Research

VZ’s Zacks Rank and Key Picks

Verizon currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Arista Networks, Inc. ANET sports a Zacks Rank of 1 (Strong Buy) at present. It supplies products to prestigious customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, ANET delivered an earnings surprise of 14.83%. It has a long-term growth expectation of 15.31%. 

Workday Inc. WDAY carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support. 

Ericsson ERIC carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 22.22%. Ericsson is a leading provider of communication networks, telecom services and support solutions and is now expanding its role into an ICT (Information and Communications Technology) solutions provider.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ericsson (ERIC) : Free Stock Analysis Report

Verizon Communications Inc. (VZ) : Free Stock Analysis Report

Workday, Inc. (WDAY) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research