#6 - Verizon (NYSE:VZ)
The case for Verizon (NYSE:VZ) comes down to social distancing and the importance of staying connected. Yes, apps like Face Time and software like Skype and Zoom will prosper. But if those are the lock, Verizon is the key.
There’s no doubt that many Americans will be taking a surgical look at their expenses. But if there’s a lesson from the higher-than-expected iPhone sales of 2019, it’s this. Americans love their smartphones. And truthfully, we’re probably addicted to them. And that means that if there’s one bill that is going to consistently get paid it will be their wireless bill.
Whether it’s an aging parent reaching out to the children and grandchildren, or parents reaching out to their aging parents or their grown kids, the importance of being connected in a more intimate way (seeing faces, hearing voices) will be paramount.
And then there’s the need for more Americans to work from home. That only increases the need to have a reliable phone. Investors are taking note. After getting caught in the coronavirus-induced selloff, the stock is up about 10% and is down only about 10% for 2020. Goldman Sachs telecom analyst, Brett Feldman recently gave Verizon an upgrade while saying the company is, “the most attractive combination of total return and risk owing to its stable wireless business, well-covered dividend (4.6% yield) and strong balance sheet.”
About Verizon Communications
Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
Read More - Current Price
- $43.15
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $46.37 (7.5% Upside)
