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Verizon (VZ) Stock Down 1.38% Despite Upgrade to ‘Conviction Buy’ by Goldman Sachs

Verizon Communications Inc (NYSE: VZ) stock dropped nearly 1.5% after the market opened on Wednesday, April 1 to trade $52.94. The drop was in contrast with most expectations, as Goldman Sachs had upgraded it to its ‘Conviction Buy’ list. The group argued that the VZ stock offers investors the most attractive combination of total return and risk, thanks to the stability of its wireless business.

Goldman Sachs Group Inc has been the leading global investment banking, securities and investment management firm, which has been providing a wide range of financial services to a lot of diversified clients. For that reason, their analysis on a given stock market is taken with a certain level of seriousness by investors, who are in search of better-returning markets.

Verizon Communications Inc is an American multinational company that owns AOL, Yahoo, which later became amalgamated into Oath Inc, currently Verizon Media. Verizon Wireless which is a subsidiary of Verizon Communication Inc is considered to be the second-largest United States-based wireless communication service as of 2019, whereby it commanded over 150 million mobile customers.

Being a component of the Dow Jones Industrial Average, Verizon enjoys a huge reception of investors in the market for a long period. It has grown over the years to see its operating income clinch above $30.38 billion as of 2019.

According to a post by Seeking Alpha, it was noted that Verizon is experiencing a surge in demand for its connectivity services due to the increased volumes of remote work. In addition, Verizon recently reported a surge in its VPN connections, and also the general web traffic. At the moment when coronavirus is pushing more people to stay indoors, most cannot help but find in house activities that will keep them engaged and put their minds away from the pandemic. 

As a result, people who enjoy online gaming are in dire need of fast internet connectivity which Verizon Wireless offers to most Americans. In return, Verizon and its shares get to stabilize in this financial crisis when the markets are free falling due to fears of the coronavirus.

To what investors are in search of, the Verizon share dividend is well covered since it is sourced from the current investing environment. In order to keep improving its core business, Verizon is set to invest approximately $18 billion on increasing 5G coverage, also adding 60 ultra-wideband mobility cities.

Currently, Verizon is paying $2.46 per share, which is approximately 4.49% of the current market price. If you are a long term investor, well based on all fundamentals Verizon shares are on the uptrend and will deliver at the end of the day.

Verizon (VZ) Stock Down 1.38% Despite Upgrade to ‘Conviction Buy’ by Goldman Sachs

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