4-Star Stocks Poised to Pop: Verizon

0 Recommendations

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telecom giant Verizon Communications (NYSE: VZ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Verizon's business, and see what CAPS investors are saying about the stock right now.

Verizon facts

Headquarters (Founded)

New York, New York (1983)

Market Cap

$93.52 billion

Industry

Telecommunication Services

TTM Revenue

$95.57 billion

Management

CEO Ivan Seidenberg (since 2002)
CFO Doreen Augustinus Toben (since 2002)

Return on Equity (average last three years)

12.1%

Competitors

Sprint Nextel (NYSE: S)
Qwest Communications (NYSE: Q)

CAPS members bullish on VZ also bullish on

AT&T (NYSE: T)
Johnson & Johnson (NYSE: JNJ)

CAPS members bearish on VZ also bearish on

Google (Nasdaq: GOOG)
Citigroup (NYSE: C)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 494 of 535 of the All-Star members who have rated Verizon -- some 92% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include drjohn432 and giantSwan, both of whom are ranked in the top 15% of our community.

In May, drjohn432 noted that Verizon is "one of the premier communication companies in the world and has great infrastructure for both fixed line and wireless apps. It also is stockholder friendly and raises its dividend on a regular basis."

A pitch by giantSwan one month later followed that line of thinking, further focusing on Verizon's solid infrastructure:

I think Verizon is a fantastic long term play here. They focus heavily on infrastructure, not external devices that interact with their network. This infrastructure will pay off in the future. Today we cannot live without cell phones. We are moving to life where we cannot live without high speed mobile data connectivity. The big wireless telecom companies are well positioned to provide these services for years to come. I like AT&T as well, but prefer [Verizon].

What do you think about Verizon Communications, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

What do the unfolding financial crisis and ongoing market volatility mean for your money? The Fool's here with answers. Get the best of our daily commentary and analysis in your inbox simply by entering your email address in the box below.

Sprint Nextel is an Inside Value recommendation. Johnson & Johnson is an Income Investor selection. Google is a choice of Rule Breakers. Try any of our Foolish newsletter services free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

Verizon Communications, Inc.

VZ Up! $28.47 +1.97 (+7.43%) 4:00 PM
CAPS Rating:
2547 Outperforms
174 Underperforms
Rate This Stock

Major Indices

S&P 500800.03+6.32%
DJIA8,046.42+6.54%
NASD1,384.35+5.18%
Updated: 4:07:36 PM
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