Why Verizon Only Gained 12% in 2013

Shares of Verizon (NYSE: VZ  ) failed to keep pace with the Dow Jones Industrial Average (DJINDICES: ^DJI  ) in 2013, gaining only 12%, while the Dow doubled that return. Moreover, Verizon's stock trades at a nosebleed-inducing 64 times trailing earnings.

How did this happen?

In the video below, Fool analyst Anders Bylund explains how Verizon and fellow Dow telecom AT&T (NYSE: T  ) are fighting back a surge of revitalized rivals. He'll also tell you why the sky-high P/E ratio shouldn't scare Verizon investors. Spoiler alert: Think "amortization and depreciation."

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9/30/2016 1:09 PM
^DJI $18324.42 Up +180.97 +1.00%
T $40.81 Up +0.08 +0.18%
AT and T CAPS Rating: ****
VZ $52.27 Up +0.15 +0.28%
Verizon Communicat… CAPS Rating: ****