Buy AT&T or Verizon Stock if Market Volatility Resurges?

Core Insights - AT&T and Verizon stocks have performed well in 2023, with AT&T up +20% and Verizon up +9%, providing a hedge against market volatility [1] - The expansion of 5G networks is driving investor interest, offering peak speeds of up to 10 gigabits per second and improved connectivity [2] AT&T Performance - AT&T added 324,000 postpaid wireless subscribers and 181,000 fixed wireless access subscribers in Q1 [3] - The company expanded its fiber-optic network by adding 600,000 new locations, aiming for 30 million fiber locations by the end of Q2 [3] - AT&T has consistently added over 200,000 fiber optic internet subscribers for 21 consecutive quarters [3] Verizon Performance - Verizon reported wireless service revenue of $20.8 billion in Q1, leading the industry [4] - The company added 308,000 new 5G Home Internet customers, with a total fixed wireless access subscriber base exceeding 4.8 million [4] - The 5G fixed wireless access market was valued at over$45 billion last year and is projected to exceed $238 billion by 2030, with a CAGR of 40.5% [4] Valuation Comparison - AT&T and Verizon are considered undervalued with forward earnings multiples of 13.2X and 9.3X, respectively, compared to T-Mobile's 22.8X [6][7] - Both companies trade under the optimal level of less than 2X sales, making them attractive to retail investors [7] Dividend Appeal - AT&T and Verizon offer attractive dividends, with annual yields over 4% and 6%, respectively, significantly higher than T-Mobile's 1.46% [9] Conclusion - Both AT&T and Verizon hold a Zacks Rank 3 (Hold), proving beneficial amid tariff concerns and economic uncertainty [12] - Long-term shareholders may be rewarded due to high dividends and ongoing 5G expansion [13]