Boasting an impressive market cap of $175.9 billion, New York-based Verizon Communications Inc. (VZ) provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Verizon fits this criterion perfectly. Verizon thrives on its extensive wireless network, which covers millions of customers and is known for reliability and quality, supported by its advanced 4G and 5G technologies. Additionally, the company demonstrates financial resilience with a strong balance sheet and diverse revenue streams, including stable service revenues and a diversified portfolio, reducing reliance on any single source.
However, the telecom operator has fallen 3.8% from its 52-week high of $43.42, achieved on April 4. Shares of Verizon are up 3.6% over the past three months, underperforming the broader Dow Jones Industrial Average Index’s ($DOWI) 9.1% gain over the same time frame.
Longer term, VZ is up 10.8% on a YTD basis, surpassing the DOWI's 10.3% gains. Moreover, Verizon shares have gained 20.4% over the past 52 weeks, compared to DOWI's 19.3% gains over the same time frame.
VZ has been trading above its 200-day moving average since mid-November last year and has remained above its 50-day moving average since mid-August.
VZ stock declined sharply in late July following disappointing second-quarter results, largely due to a slowdown in phone upgrades. On Jul. 22, VZ shares closed down more than 6% after reporting Q2 revenue of $32.80 billion, below Wall Street forecasts of $33.05 billion. Its adjusted EPS of $1.15 was in line with Wall Street expectations.
Nevertheless, top rival AT&T Inc. (T) has surpassed VZ and the broader equity benchmark. AT&T stock has gained 34.7% over the past 52 weeks and 18.6% on a YTD basis.
The stock has a consensus rating of "Moderate Buy" from the 22 analysts in coverage, and the mean price target of $45.71 is a premium of just 9.4% from current levels.
On the date of publication, Kritika Sarmah 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.
