This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Verizon Is Overdue for a Rally

Stocks in this article: VZTTMUSVOD

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.

1 of 2

Markets

DOW 17,805.82 +27.67 0.16%
S&P 500 2,072.96 +11.73 0.57%
NASDAQ 4,773.0150 +24.6190 0.52%