Should You Buy Verizon Communications Stock Before Oct. 20?

Core Viewpoint - Verizon Communications is facing challenges despite a low valuation and high dividend yield, with recent leadership changes and a flat stock performance amid a rising market [1][2][6]. Group 1: Earnings Report and Stock Performance - Verizon is set to report its third-quarter earnings on October 20, with expectations that the low valuation and recent news may present a buying opportunity [2]. - Historically, Verizon's stock movements on earnings day have been modest, typically remaining within a range of $40 to $45 since 2024 [3]. - The stock has not shown significant volatility in response to earnings reports, although a recent leadership change led to a notable decline of over 5% [5][6]. Group 2: Leadership Change - On October 6, Verizon appointed Dan Schulman, former PayPal CEO, as the new leader, replacing Hans Vestberg [6]. - The unexpected leadership change may have contributed to investor concerns, leading to a decline in stock price as investors anticipate potential troubling results in the upcoming earnings report [7][8]. Group 3: Business Stability and Investment Potential - Despite current struggles, Verizon operates a stable business model with essential products and services, generating strong profit margins of around 13% and offering a dividend yield of just under 7% [9]. - The stock trades at a price-to-earnings multiple of just over 9, significantly lower than the S&P 500 average of more than 25, suggesting potential for long-term investment [10].