Dow Today: Verizon Communications (VZ) Higher

The Dow Jones Industrial Average ( ^DJI) is trading up 91 points (+0.7%) at 13,304 as of Tuesday, May 1, 2012, 10:35 a.m. ET. During this time, 154.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 743.8 million. The NYSE advances/declines ratio sits at 2,293 issues advancing vs. 559 declining with 115 unchanged.

The Dow component leading the way higher looks to be Verizon Communications (NYSE: VZ), which is sporting a 37-cent gain (+0.9%) bringing the stock to $40.75. This single gain is lifting the Dow Jones Industrial Average by 2.8 points or roughly accounting for 3.1% of the Dow's overall gain. Volume for Verizon Communications currently sits at 5.8 million shares traded vs. an average daily trading volume of 14.3 million shares.

Verizon Communications has a market cap of $114.29 billion and is part of the technology sector and telecommunications industry. Shares are up 0.6% year to date as of Monday's close. The stock's dividend yield sits at 5%.

Verizon Communications Inc. provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. It operates in two segments, Verizon Wireless and Wireline. The company has a P/E ratio of 43.3, above the average telecommunications industry P/E ratio of 42.8 and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Verizon Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.