Dow Today: Verizon Communications (VZ) Higher

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading up 59 points (+0.4%) at 13,634 as of Friday, Oct 5, 2012, 10:35 a.m. ET. During this time, 182.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 579.1 million. The NYSE advances/declines ratio sits at 2,266 issues advancing vs. 555 declining with 124 unchanged.
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The Dow component leading the way higher looks to be Verizon Communications (NYSE: VZ), which is sporting a 42-cent gain (+0.9%) bringing the stock to $47.17. This single gain is lifting the Dow Jones Industrial Average by 3.18 points or roughly accounting for 5.4% of the Dow's overall gain. Volume for Verizon Communications currently sits at 4.7 million shares traded vs. an average daily trading volume of 13.2 million shares.

Verizon Communications has a market cap of $131.85 billion and is part of the technology sector and telecommunications industry. Shares are up 15.4% year to date as of Thursday's close. The stock's dividend yield sits at 4.5%.

Verizon Communications Inc. provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company has a P/E ratio of 45.8, equal to the average telecommunications industry P/E ratio 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, expanding profit margins, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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