Verizon Is Down 36% From Its High. Time to Buy?
Low-beta stocks are typically less volatile than the broader stock market, making them popular with conservative investors when the market gets bumpy. However, U.S. telecom company Verizon Communications (NYSE: VZ) has had an uncharacteristically bumpy year. Despite a beta of just 0.3, the shares have fallen more than the S&P 500 in this bear market -- down 36% from their high and 24% over the past year.
Verizon's fall isn't completely unmerited, but don't be so quick to write off the stock for next year and beyond. The stock's valuation is pricing in a lot of pessimism, and there are legitimate reasons to be excited instead. Here is what makes Verizon a prime bounce-back candidate moving forward.
Verizon didn't have a problem-free campaign in 2022. It has been decisively outdone by competitors AT&T and T-Mobile in its core wireless segment. Verizon lost 16,000 wireless customers through the first nine months of 2022. You can see below how the falling share price has steadily punished the stock's valuation throughout the year. But has Mr. Market gone too far?
Source Fool.com
