New York-based Verizon Communications Inc. (VZ) provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities. Valued at a market cap of $181.4 billion, the company offers communication services in the form of local phone service, long distance, wireless and data services.
Companies worth $10 billion or more are generally described as “large-cap” stocks and Verizon fits right into that category, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the telecom services industry. VZ's market leadership is driven by its strong brand reputation and customer loyalty. The company's service revenues, primarily from its large postpaid and prepaid customer base, demonstrate stability and trust. With a total of over 113 million phone customers, Verizon is known for its reliability and quality in the wireless industry.
Despite its notable strength, this telecommunication giant has declined 5% from its 52-week high of $45.36, achieved on Sep. 30, 2024. Moreover, it has fallen 2.9% over the past three months, lagging behind the iShares U.S. Telecommunications ETF’s (IYZ) 2.7% rise over the same time frame.
Moreover, in the longer term, VZ has gained 7.5% over the past 52 weeks, massively underperforming IYZ’s 30.3% return. However, on a YTD basis, shares of Verizon are up 7.8%, outpacing IYZ’s almost 5.9% gain over the same time frame.
To confirm its bullish trend, VZ has been trading above its 200-day and 50-day moving averages since mid-February.
On Mar. 3, Verizon and Accenture plc (ACN) announced a strategic partnership to enhance cybersecurity solutions in response to the rapidly evolving threat landscape. This collaboration aims to help businesses of all sizes combat a wide range of threats, including data breaches, phishing attacks, and social engineering.
Moreover, on Feb. 26, Verizon and its collaborators Ericsson and Qualcomm Technologies achieved a U.S. record-breaking 480 mbps uplink speed using sub-6 GHz spectrum.
Additionally, on Jan. 24, VZ shares saw a slight gain following the release of its better-than-expected Q4 earnings. The company posted $35.7 billion in revenue, slightly surpassing consensus estimates, and reflecting a 1.6% year-over-year increase, driven by growth in service and wireless equipment revenues. Adding to the positives, VZ delivered an adjusted EPS of $1.10, up 1.8% from the previous year, beating forecasts by a penny.
Verizon’s underperformance becomes more evident when compared to its rival, AT&T Inc. (T), which rallied 61.6% over the past 52 weeks and 20.4% on a YTD basis.
Despite VZ’s recent underperformance compared to its industry peers, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 25 analysts covering it, and the mean price target of $46.49 suggests a slight 7.9% premium to its current levels.
On the date of publication, Neharika Jain 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.
More news from Barchart
- Is Google Stock a Buy, Sell, or Hold as Layoffs at the Tech Giant Continue?
- Is Amazon Stock a Buy, Sell, or Hold Ahead of Alexa+ Launch?
- Is IonQ Stock a Buy, Sell, or Hold as It Snaps up a Quantum Computing Specialist?
- Unusual Options Alert: Pure Storage’s (PSTG) Fallout Could Be a True Discount
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
