What's Going On With Verizon (VZ) Stock?

Verizon Communications Inc. VZ shares are trading higher by 1.6% to $31.54 Thursday morning. Shares are trading higher in sympathy with peer telecommunication company AT&T Inc. T after the company reported better-than-expected third-quarter financial results.

What Happened?

In the third quarter of FY23, AT&T Inc T reported operating revenues of $30.35 billion, representing a 1% year-over-year increase, surpassing the consensus estimate of $28.69 billion. Additionally, their adjusted earnings per share (EPS) were $0.64, exceeding the consensus estimate of $0.59.

These results were driven by higher revenues in the Mobility, Mexico and Consumer Wireline segments, although they were partly offset by lower revenues in the Business Wireline segment.

Within the Mobility segment, AT&T achieved 494,000 total phone net additions, which included 468,000 postpaid phone net additions and 26,000 prepaid phone net additions...Read More

Why This Matters To Verizon Investors

The telecommunications sector is often viewed as a stable and dividend-yielding investment. When a major player like AT&T reports strong financial results, it can positively affect investor sentiment towards the entire sector.

This increased confidence may lead investors to consider similar companies, such as Verizon, as attractive investment opportunities.

Strong performance by one major telecom player can highlight the overall strength of the telecom infrastructure in the country. This can encourage investors to see the sector as a safe and dependable investment option.

Verizon, benefiting from similar infrastructure, can see its stock rise due to this overall positive sentiment.

See Also: Tesla Stock Pulls Back To Late-August Lows

According to data from Benzinga Pro, VZ has a 52-week high of $42.58 and a 52-week low of $30.14.