VZ Stock: Market Share Losses
Craig Moffett, analyst at MoffettNathanson, recently downgraded Verizon stock to under-perform. He noted that "whether it's total phones or postpaid phones, Verizon has lost market share in every quarter since the second quarter of 2020."
"Verizon has done its best to avoid being dragged into AT&T's promotional abyss, but their efforts have been met with only limited success," added Moffett.
Meanwhile, Warren Buffett's Berkshire Hathaway (BRKB) unloaded its remaining 1.4 million shares of Verizon stock in the second quarter.
June-quarter earnings for VZ stock missed estimates. The telecom company lowered 2022 EPS guidance for Verizon stock.
Verizon said it added only 12,000 postpaid wireless phone subscribers in Q2 versus estimates of 144,000.
In the year-earlier period, Verizon added 275,000 postpaid wireless phone customers.
"Verizon's issue is around the marketing and branding image," said Raymond James analyst Frank Louthan in a report. "For whatever reason the network quality isn't enough to bring customers in the door. Management has thrown in the towel and the guide implies they are getting back into the kn--e fight for subscribers with heavier promotion and retention spending through the rest of 2022."
VZ Stock Analysis: Is It A Buy Right Now?
VZ stock holds a Relative Strength Rating of 21 out of a best possible 99, according to the IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better.
Verizon stock also holds an IBD Composite Rating of 30 out of a best possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Verizon stock, meanwhile, has an Accumulation/Distribution Rating of D-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling. Think of the C grade as neutral.
As of Oct. 10, VZ stock has no valid entry point. It needs to forge a new base.
Investors could take a look at other 5G stocks, such as chip makers or network gear suppliers.
Meanwhile, emerging 5G wireless apps could take years to generate significant revenue. Rather than buy Verizon stock, income-oriented investors might consider a large ETF such as SPY, which tracks the S&P 500.