In the context of changing monetary policy, there is a growing expectation that interest rates will be lowered in the second part of the year. This is creating opportunities for wise investors to profit from calculated market movements. To begin with, the first one aims to expand globally, focusing on profitable but unexplored foreign markets. The company aims to expand into regions such as Latin America, EMEA, and APAC to increase the number of subscribers.
Meanwhile, the second company is emerging as a significant player in the energy industry. It has proudly announced its record natural gas liquids (NGL) and oil transportation volumes, solidifying its competitive advantage. The company’s well-timed acquisitions and sharp operational performance have maintained its market lead and instilled confidence in potential investors about its future growth and profitability.
The third one takes advantage of the growing need for fixed wireless access (FWA) customers. As a result, its broadband coverage is growing, and its network infrastructure is strengthened. Following possible reductions in interest rates, these three stocks provide attractive investing opportunities.
Each company has a strategic stance to fully realize its growth potential and negotiate the complexities of the market.
Warner Bros. Discovery (WBD)
Latin America is the first major foreign market that Warner Bros. Discovery (NASDAQ:WBD) is strategically entering with HBO Max, and the EMEA and APAC areas will follow. This expansion offers a big chance for development. Compared to its larger contemporaries, this company is now available in fewer than half of the addressable homes and markets. Additionally, the business is expanding its worldwide ad-supported product line, which will increase subscriber growth and revenue-generating potential.
Additionally, Warner Bros. Discovery is investing considerably in a solid content pipeline for its TV and film studios. This includes spin-offs for high brands like Game of Thrones and Harry Potter. Moreover, the company’s collaborations with sharp authors and filmmakers, like George R.R. Martin, Alejandro Inarritu, and Tom Cruise, mark its focus on solid narrative.
Lastly, Warner Bros. Discovery has considerably reduced its debt. As of 2023, $5.4 billion of debt was paid off, giving the company a net leverage of 3.9 times EBITDA. The company’s adaptable capital structure offers flexibility and financial stability for upcoming growth projects and investments. This includes fixed-rate debt with manageable maturities over the next few years.
Energy Transfer (ET)
Energy Transfer’s (NYSE:ET) segments saw record volumes in 2023. These include fractionation, terminal operations, NGL transportation, and crude oil transportation. Moreover, greater quantities from the Permian area and rising demand for NGLs caused NGL transportation volumes to boost by 10% to 2.2 million barrels per day. Additionally, fractionated volumes hit a record 1.1 million barrels per day. This demonstrates Energy Transfer’s operational edge and the high demand for fractionation services.
In addition, during Q4 2023, the volume of crude oil transported uplifted by 39% to a record 5.9 million barrels per day. Higher flows on Texas pipeline systems, the Bakken and Bayou Bridge Pipelines, and the acquisitions of Lotus and Crestwood properties caused this solid boost.
Finally, Energy Transfer’s market position and operational skills have improved due to its strategic acquisitions, including Crestwood Equity Partners LP. In conclusion, the merged activities are still being integrated. It is anticipated that there will be yearly cost synergies of $80 million by 2026, of which $65 million will occur in 2024. Hence, these synergies will strengthen Energy Transfer’s competitive position and drive operational efficiencies.
Verizon (VZ)
In Q1 2024, Verizon (NYSE:VZ) gained 151K net new FWA subscribers. The fast boost in FWA subscribers reflects Verizon’s ability to fulfill changing connection needs, which prioritize flexibility, simplicity of deployment, and reliability.
Furthermore, the considerable increase in FWA subscribers reflects Verizon’s robust network architecture and ability to draw in clients looking for other broadband options. Verizon has a chance to take market share and diversify its sources of income with this development. Growth and competitiveness generally are aided by this.
Moreover, Verizon’s C-Band network architecture reaches over 250 million points of presence (POP), meeting its goal about a year ahead of schedule. Further, Verizon’s network has more than 11 million broadband users. Additionally, Verizon’s strategic focus on AI and network excellence is supported by its broadband customer base and network coverage growth. This infrastructure guarantees dependable connectivity for clients and the large-scale delivery of AI services.
Ultimately, Verizon’s network infrastructure investment puts it in a leadership position inside the AI revolution and improves its capacity to provide exceptional customer experiences. Hence, broadband coverage expansion promotes growth prospects in the commercial and consumer sectors, boosting revenue and solidifying Verizon’s lead.
As of this writing, Yiannis Zourmpanos held long positions in WBD and VZ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.