New York-based Verizon Communications Inc. (VZ) provides communications, technology, information, and entertainment products and services. Valued at $209.5 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 $200 billion or more are generally described as “mega-cap stocks,” and VZ definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in 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 1.2% from its 52-week high of $50.48, achieved on Feb. 23. Over the past three months, VZ stock has gained 24%, outperforming the Communication Services Select Sector SPDR ETF’s (XLC) 2.8% gains during the same time frame.
Shares of VZ rose 22.4% on a YTD basis and climbed 15.1% over the past 52 weeks, outperforming XLC’s YTD losses of 1.3% and 12.5% returns over the last year.
To confirm the bullish trend, VZ has been trading above its 50-day and 200-day moving averages since late January.
On Jan. 30, VZ shares closed up by 11.8% after reporting its Q4 results. Its adjusted EPS of $1.09 surpassed Wall Street expectations of $1.06. The company’s revenue was $36.4 billion, beating Wall Street forecasts of $35.9 billion.
In the competitive arena of telecom services, AT&T Inc. (T) has lagged behind VZ, showing resilience with a 14.1% uptick on a YTD basis and a 6% gain over the past 52 weeks.
Wall Street analysts are reasonably bullish on VZ’s prospects. The stock has a consensus “Moderate Buy” rating from the 29 analysts covering it. While VZ currently trades above its mean price target of $49.57, the Street-high price target of $71 suggests a 42.4% upside potential.
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.
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