
NYSE:VZ
This summary was created by AI, based on 6 opinions in the last 12 months.
Verizon Communications (VZ) has experienced significant stock movement lately, with a notable increase of 18.6% in the past six months, largely influenced by a change in leadership with the appointment of a new CEO. However, experts express mixed sentiments about its future growth prospects due to the global memory chip shortage, which diverts resources to more lucrative areas like AI. Despite the strong recent performance and a healthy 6.7% dividend yield, some analysts caution that the stock may lack growth potential and could experience further declines in the coming months. There is also a prevailing sentiment that the stock functions more like a bond, appealing to investors seeking steady income rather than capital growth. Overall, while it remains a reliable performer for income-focused investors, the lack of growth raises concerns about its long-term attractiveness.
The entry into Canada is going to be interesting but there are going to be some obstacles. Pretty decent yield and it is pretty safe as well. You are probably looking at 9%-10% long-term growth and paying about 18X earnings so it is not necessarily cheap. Telecom is a defensive space. He prefers Consumer Staples a little bit more than Telecoms. However, he thinks this is a keeper. (See Top Picks.)
He doesn’t own any communication stocks. Would wait for a pullback to about $47. Likes US communication business a little better.