Verizon Communications Inc. (NYSE:VZ) shares edged slightly higher on Wednesday after the company revealed plans to expand its 5G home and wireless offerings to six states. Over three years, the company plans to invest about $10 billion for the 5G rollout, making it the biggest 5G network company globally.
Some of the new states to benefit from the expanded rollout include Austin, Texas; Gresham, Oregon; and Nashville, Tennessee. The announcement means the company remains on course to achieve its 5G target of serving approximately 175 million people by the end of 2022.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Verizon shares are down more than 5% this year despite its exciting 5G plan. The company has invested heavily in 5G networks, dubbed the communication technology of the future. Therefore, it is in an excellent position to benefit as adoption in the market continues to grow.
In addition, Verizon shares trade at an attractive price-earnings ratio of 11.53, making the stock a compelling investment option for value investors. Its forward P/E ratio of 10.32 is also exciting.
Furthermore, Verizon shares trade at a dividend yield of 4.51%, making the stock one of the best dividend stocks in the telecommunications industry. Therefore, Verizon has several features that attract investors ahead of its exciting future in the 5G market.
As such, it would be best to buy while the stock price is still low before bouncing back.
Technically, the VZ stock price seems to be trading within a descending channel formation in the intraday chart. However, the stock has bounced back this week to avoid slipping to oversold conditions.
Therefore, investors could target extended rebound profits at approximately $56.74 or higher at $58.02. The key support levels are $54.34 and $52.84.
In summary, Verizon Communications’ stock has declined more than 5% this year compared to the S&P 500 index’s gain of more than 20%. Therefore, the company is significantly underperforming the market, making it a lucrative investment option.
Furthermore, the VZ stock seems significantly undervalued based on its price-earnings ratio. As such, the current rebound could continue further.
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
There is good reason to be afraid. Previous down markets have seen declines in excess…
United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are two robust logistics companies. Both…
Canadian crypto mining firm Bitfarms sold roughly $62 million worth of Bitcoin (BTC) in June,…
Invezz does not provide financial advice. Our aim is to simplify information about investing, enabling…
Noma, a Japanese film studio, has announced that it is producing three feature films that…
Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a…