On paper, Verizon Communications (NYSE: VZ) stock should look like a slam-dunk buy, considering its market positioning and low valuation. Verizon is one of only three nationwide 5G providers in the U.S., and given the cost to build such a network, it is unlikely that new competitors will enter the market.

Shares also sell at a price-to-earnings (P/E) ratio of only about 15. Considering the importance of wireless communications in everyday life, a longtime emphasis on quality, and its increasing role in supporting artificial intelligence (AI), Verizon controls its destiny.

Unfortunately, the race to keep up with AT and T-Mobile left Verizon with a total debt of $149 billion, and the company has made very little progress in reducing that burden. Hence, until it makes one critical move, the telecom stock will probably continue to suffer.

Continue reading

Source Fool.com