When it comes to investing in the stock market, choosing the right company is crucial. A name that keeps popping up is Verizon Communications (VZ), especially when talking about the telecom sector. If you’re an experienced investor or just beginning, you must be asking, “Is VZ stock a good investment?” Let’s see what makes this stock tick and how it has performed so far, and if it might be worth adding to your portfolio.
What is VZ stock?
VZ is a company’s stock or shares, represented by Verizon Communications Inc. The biggest American telecommunication firm is offering wireless services and broadband with high definition television facilities under its label, FiOS. Verizon, the biggest wire-line telephone in the U.S., competes with the companies such as AT&T and T-Mobile in that area.
Verizon has its roots back to 1983 when it first began as Bell Atlantic, and it had been growing throughout the years until it became a significant player in the telecom business. Investors, generally, will watch VZ stock for being stable, high-yielding for dividends, and in an essential sector for individual and business communication.
Verizon Tops Q4 Estimates as Wireless Subscribers Rise
Verizon Communications (VZ) reported better-than-expected fourth-quarter results Friday morning as the number of wireless subscribers rose.
Verizon reported consolidated net income of $5.11 billion, or $1.18 per share, on $35.68 billion in revenue. Analysts polled by Visible Alpha expected profit of $4.74 billion, or $1.09 per share, on $35.36 billion in revenue.
VZ Stock Performance: How Have the Numbers Been?
ver the last few years, VZ stock has been relatively stable but hasn’t experienced huge gains like some of the newer tech stocks. For long-term investors, Verizon’s performance has been solid, especially in terms of dividends. If you’re looking for a stock that gives you consistent returns and a little bit of growth on top, VZ has been a reliable choice.
However, changes in technology, regulations, or consumer preferences that impact the broader telecom industry could reduce Verizon’s growth potential. This is a good area to watch for Verizon with the shift to 5G, but the execution and the competition from other carriers will tell how well they can capitalize on this opportunity.