Shares of Verizon (VZ +2.75%) failed to keep pace with the Dow Jones Industrial Average (^DJI 0.36%) 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 (T +2.42%) 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."
