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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Related Tickers

12/18/2014 4:52 PM
^DJI $17778.15 Up +421.28 +2.43%
DOW JONES INDUSTRI… CAPS Rating: No stars
T $33.51 Up +0.84 +2.57%
AT&T CAPS Rating: ****
VZ $47.05 Up +0.61 +1.31%
Verizon Communicat… CAPS Rating: ****

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