New York-based Verizon Communications Inc. (VZ) provides communications, technology, information, and entertainment products and services. Valued at $185.3 billion by market cap, VZ is the largest telecommunications company in the U.S. that provides wire line voice, data services, wireless, and internet services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and VZ perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the telecom services industry. Verizon's main strength is its strong network infrastructure, consistently ranking high in reliability and speed. Its investment in 5G technology gives it a competitive edge. With a strong brand reputation and loyal customer base, Verizon offers a diverse portfolio of services, providing multiple revenue streams and financial stability.
Despite its notable strength, VZ slipped 7.2% from its 52-week high of $47.36, achieved on Mar. 10. Over the past three months, VZ stock has gained 2%, outperforming the S&P 500 Index’s ($SPX) marginal dip during the same time frame.
In the longer term, shares of VZ rose 9.9% on a YTD basis and climbed 11.7% over the past 52 weeks, outperforming SPX’s YTD marginal gains and 11.4% returns over the last year.
To confirm the bullish trend, VZ has been trading above its 200-day moving average since mid-February, with slight fluctuations. The stock is trading above its 50-day moving average recently.
Verizon's strong performance is driven by high demand for wireless and broadband services. The expansion of their 5G networks has sparked investor interest, with industry-leading wireless service revenue of $20.8 billion in Q1. Verizon added 308,000 new 5G Home Internet customers, bringing their total subscriber base to over 4.8 million.
On Apr. 22, VZ shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $1.19 beat Wall Street expectations of $1.15. The company’s revenue was $33.5 billion, exceeding Wall Street forecasts of $33.3 billion.
In the competitive arena of telecom services, AT&T Inc. (T) has taken the lead over VZ, showing resilience with a 22.1% uptick on a YTD basis and a solid 61% gain over the past 52 weeks.
Wall Street analysts are moderately bullish on VZ’s prospects. The stock has a consensus “Moderate Buy” rating from the 25 analysts covering it, and the mean price target of $47.14 suggests a potential upside of 7.2% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
