If you had invested $1,000 in Verizon (VZ) stock at the low point of the COVID-19 pandemic, here’s how much you’d have now – Verizon Communications (NYSE:VZ)
Investors who bought stocks during the COVID-19 stock market crash of 2020 have generally seen strong gains over the past two years. But there is no doubt that some big-name stocks have performed better than others since the trough of the pandemic.
Verizon’s bumpy ride: One company that has been a disappointing investment over the past two years has been the telecommunications giant Verizon Communications Inc. VZ.
At the start of 2020, Verizon shares were trading at $61.38. In early March, the stock had fallen to $55.16 after news of the virus spreading in China sparked concerns of a US pandemic. On March 25, 2020, Verizon stock finally bottomed out at $48.84. Fortunately, the stock rebounded somewhat from then on as the broader market rallied.
By early September, Verizon shares were back above $61. But as the S&P 500 continued to climb in the second half of 2020, Verizon stalled.
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At the start of 2021, Verizon was down to $58.96.
Verizon In 2022, beyond: In April 2022, Verizon fell below its March 2020 low when the company announced that it had lost nearly 300,000 subscribers in the first quarter and cut its forecast. The loss of subscribers was particularly severe given the competitors AT&T Inc. J and T-Mobile Us Inc TMUS added hundreds of thousands of subscribers during the quarter.
In October 2022, Verizon reported a 23% decline in net income and the loss of 189,000 additional monthly paid subscribers, sending the stock to new lows. Verizon shares eventually fell to $34.55 before rebounding to $38.22 today.
Still, investors who bought Verizon on the day it hit its 2020 pandemic low and held steady have delivered a disappointing return on investment. In fact, $1,000 worth of Verizon stock purchased on March 25, 2020 would be worth about $872 today, assuming dividends reinvested.
Looking ahead, analysts expect Verizon stock to rebound over the next 12 months. The average price target among the 22 analysts covering the stock is $43, suggesting a 12.5% upside from current levels.