Dow Today: Verizon Communications (VZ) Lower

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 down 26.0 points (-0.2%) at 12,516 as of Friday, Nov 16, 2012, 10:35 a.m. ET. During this time, 214.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 602.7 million. The NYSE advances/declines ratio sits at 1,445 issues advancing vs. 1,443 declining with 92 unchanged.
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Holding back the Dow today is Verizon Communications (NYSE: VZ), which is lagging the broader Dow index with a 90-cent decline (-2.2%) bringing the stock to $40.80. This single loss is lowering the Dow Jones Industrial Average by 6.81 points or roughly accounting for 26.2% of the Dow's overall loss. Volume for Verizon Communications currently sits at 10.1 million shares traded vs. an average daily trading volume of 13.5 million shares.

Verizon Communications has a market cap of $120.55 billion and is part of the technology sector and telecommunications industry. Shares are up 5.3% year to date as of Thursday's close. The stock's dividend yield sits at 4.9%.

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 39.1, 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 increase in net income, revenue growth, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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