3 Reasons Verizon Stock Will Likely Continue to Underperform the Market
Verizon Communications (NYSE: VZ) may be one of the more surprising underperformers in the market today. It operates one of the three nationwide wireless networks in the U.S., and it also manages an extensive fiber network. As a longtime leader in network quality, it should presumably hold a competitive advantage.
Nonetheless, staying competitive with and T-Mobile US comes at a high cost, a likely consequence of the stock's poor performance. Thus, as it deals with three key challenges, its struggles will likely continue.
Not surprisingly, the cost of upgrades and maintenance is a tremendous burden for Verizon. Over the past 12 months, the company has spent more than $18 billion on capital expenditures alone. That has contributed to the company's tremendous debt levels. As of the third quarter, total debt stood at almost $147 billion. Considering its book value is just over $106 billion, that burden places significant strain on its balance sheet.
Source Fool.com
Verizon Communications Inc. Stock
Verizon Communications Inc. is currently one of the favorites of our community with 11 Buy predictions and no Sell predictions.
With a target price of 43 € there is a slightly positive potential of 8.68% for Verizon Communications Inc. compared to the current price of 39.57 €.
