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Verizon Is Overdue for a Rally

NEW YORK (TheStreet) -- Investors are revisiting the telecommunications companies for their perceived safety during this period of market turbulence and sector rotation. That means best-in-breed Verizon (VZ) is due for a move higher. Overdue, I believe.

The second-largest U.S. telecom, AT&T (T) has rallied 13% in the past five weeks while shares of Verizon -- which closed Monday at $48, off 2.1% for the year to date -- have underperformed. The following three-month chart illustrates AT&T's  share price movement.

T ChartT data by YCharts

Since AT&T's low of $31.76 on March 3, shares have soared to a high of $35.88 on April 4th. During the same five-week period Verizon stock went from $46.82 to $48.35, slightly more than a 3% rise.

Both companies have been competing to keep wireless customers while attracting new ones. AT&T's new subscriber plan called "Next" has been popular and contributes to positive expectations when the company reports its first-quarter earnings on April 22. Verizon has "More," as in "The More Everything Plan."

It competes handily with its aggressive rivals. I know because I recently shopped the three major wireless telecoms including T-Mobile (TMUS).

When I visited each companies' local store I asked for the best possible deal for my cell phone needs. Each had very similar pricing structures and the same no-contract-necessary promotions going on, but AT&T's Next plan was built around trading in my old phone and financing a new one over a 20- or 26-month period.

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DOW 16,937.62 +18.03 0.11%
S&P 500 1,981.95 +0.35 0.02%
NASDAQ 4,520.3280 -7.1860 -0.16%

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