What Happened?
Shares of telecommunications giant Verizon (NYSE:VZ) fell 5.6% in the afternoon session after the company reported third-quarter earnings with revenue falling below analysts' expectations partly due to a decline in wireless equipment sales. Other key metrics were in line to slightly below. Total postpaid phone net additions fell below consensus estimates, highlighting potential concerns about a weak upgrade cycle. There were other concerns, as management added that "growth in phone net additions were offset by reduced FWA (Fixed wireless access) volumes and losses in tablets, wearables, and other connected devices." Overall, this quarter could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Verizon? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Verizon’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Verizon is up 6.9% since the beginning of the year, and at $41.57 per share, it is trading close to its 52-week high of $45.21 from September 2024. Investors who bought $1,000 worth of Verizon’s shares 5 years ago would now be looking at an investment worth $684.05.
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.