Why Verizon Communications Inc. Stock Is Rallying Today
Verizon Communications Inc. (NYSE:VZ) shares were gaining Friday as the company received an upgrade from analysts at JP Morgan Chase & Co. (NYSE:JPM).
The carrier’s stock are slated to rise at a healthy rate this year as the company is rolling out a higher-than-expected dividend yield that will likely bring in more investors, according to analysts at the bank. Plus, Verizon is on the path to roll out 5G wireless, which should bring in more investors as well, while customers will be attracted by the advanced connection offering.
In its upgrade, JP Morgan raised its rating on VZ shares from neutral to overweight, saying it forecasts a better competitive climate throughout the next 12 months. “Verizon seems to be the one carrier that is heads down, executing on the business, and could see its share improve commensurately,” JP Morgan analyst Philip Cusick wrote Friday.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
“We have an increased level of confidence that revenue can stabilize and potentially start to grow. Given the potential issues and distractions of its wireless competitors, we are less negative on the overall wireless industry,” Cusick added.
Verizon could be introducing a number of mobile 5G handsets as soon as 2019, with the long-term goal to develop industrial applications, including smart cities, connected cars and Internet of Things.
VZ stock is up 3% Friday, while JPM shares fell 0.4% on the day.
More From InvestorPlace
The post Why Verizon Communications Inc. Stock Is Rallying Today appeared first on InvestorPlace.
