Is It Safe? Verizon Is Poised to Bounce Back

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In the days of yore, tech and telecom walked hand in hand.

But as the Nasdaq has risen 16% this year, Verizon Communications(VZ Quote), America's telecom giant, has fallen 14%. Investors are skeptical about the company's growth prospects as U.S. cellphone penetration approaches 90% and Verizon missed the boat on Apple's(AAPL Quote) iPhone, the second-most popular smart phone after Research in Motion's(RIMM Quote) BlackBerry. Apple has sold more than 21 million iPhones worldwide.

At its current share price, Verizon is inexpensive and offers a dividend yield of 6.3%, almost twice that of the S&P 500 Index. With a price-to-earnings ratio of about 13, the company is nearly 20% cheaper than its average peer. Although a crest in revenue is a concern, 2009 and 2010 may hold a few upside surprises. TheStreet.com Ratings gives the company a "buy" recommendation. ...