As is the case every year, the major Wall Street firms we cover here at 24/7 Wall St. come out with a list of stocks that they feel will be the top performers for the coming year. While 2020 was a veritable train wreck anomaly compared to most years, with everything from the pandemic that crippled the economy and killed hundreds of thousands to a roller-coaster stock market that dropped 35% in less than a month and has since rallied to all-time highs. Nonetheless, Wall Street analysts are doing their jobs, and the top picks are coming out fast.
With many concerned that valuations are very stretched, it makes sense for investors to consider thinning the momentum herd in portfolios and perhaps look for growth ideas that are less crowded. One outstanding group to consider is telecom services, which includes U.S. telecom companies, cable, towers and data centers and media outlets.
A new Goldman Sachs research report includes six top telecom services picks. While all are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Verizon Communications Inc. (NYSE: VZ) stock offers tremendous value at current levels and is on the Goldman Sachs Conviction List. This is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.
The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition. Verizon acquired AOL and Yahoo to create the Oath digital content platform.
Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Investors receive a 4.38% dividend. The Goldman Sachs price target for the shares is $68, while the Wall Street consensus target is $61.62. Verizon Communications stock closed Tuesday’s trading at $57.26.
Source: Read Full Article