Verizon Stock Too Cheap to Ignore

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Signage is seen at a Verizon store in Manhattan, New York City

With a yield of 6.94%, Verizon (VZ) may be too cheap to ignore.

After plummeting from about $50 to $38, the stock is incredibly oversold at support last seen in 2018.  It’s also wildly oversold on RSI, MACD, and Williams’ %R. It also carries a respectable dividend yield of 6.94%.  Verizon’s P/E of 8.3 is also cheap, as compared to the S&P 500, where the average stock trades with an average P/E of about 18.

Better, Oppenheimer analysts just upgraded the stock to an outperform rating, with a price target of $50 a share.  “The price is right after years of underperformance,” they said, as quoted by Barron’s. “We previously downgraded on 2/25/21, because the company overpaid for spectrum and [was] late to mid-band 5G builds, which led to customer defections, weaker balance sheet, and substantial capex investment. These factors are now reversing.”

In addition, according to Morningstar, as quoted by TheStreet.com:

“We continue to believe the market is overly focused on Verizon’s struggle to add postpaid consumer wireless customers in recent quarters. The firm is the share leader in this category, which creates a headwind in an environment where the carriers’ networks look increasingly alike.” However, Verizon “has taken steps to ensure it remains well positioned in the traditional wireless business.”