Why Verizon's Stock Plunged 7.5% Today
Shares of U.S. telecom giant (NYSE: VZ) fell 7.5% in trading on Monday after a series of articles in The Wall Street Journal highlighted the lead in cable sheathing that telecom companies used decades ago. Some analysts downgraded the stock, but the market sold before we got any details from the company.
The report highlighted lead in cables used primarily by AT (NYSE: T) but also brought Verizon into the equation. AT has more legacy assets that reach people's homes, while Verizon's business has been more focused on wireless assets for more than two decades.
What wasn't quantified was any lead contamination levels, liability for either company, or what the mitigation might be. Morningstar said that they believe any liability would be very limited because the telecom industry has put best practices in place to protect workers from lead poisoning.
Source Fool.com
Verizon Communications Inc. Stock
With 24 Buy predictions and 1 Sell predictions Verizon Communications Inc. is one of the favorites of our community.
As a result the target price of 41 € shows a slightly positive potential of 7.71% compared to the current price of 38.07 € for Verizon Communications Inc..
