Jim Cramer’s Lightning Rounds: 9 Stocks in Focus

1. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 57

Cramer was asked about Verizon Communications Inc. (NYSE:VZ) during an episode aired in January and he said, “I don’t like to buy a stock just for the yield when it doesn’t have growth and that happens to be Verizon.”

Verizon Communications Inc. (NYSE:VZ) provides a variety of communication, technology, and entertainment services to consumers, businesses, and government clients globally, including wireless, broadband, and wireline offerings. As of January 30, the company stock has a dividend yield of around 6.9%.

While Cramer believes that the company does not have growth prospects, Aristotle Capital Management, LLC stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:

“Headquartered in New York, Verizon Communications Inc. (NYSE:VZ) is one of the largest telecommunications companies in the U.S. The company was formed in 2000 with the combination of Bell Atlantic Corp. and GTE Corp., businesses with roots dating back to the late 19th century and the beginning of the telephone business.

Over the years, Verizon has expanded through strategic acquisitions and innovations, particularly in wireless technology, which has become the cornerstone of its business. Unlike its competitor AT&T’s strategy of vertical integration through the acquisition of media and entertainment companies, which AT&T is now unwinding, Verizon has instead focused on expanding its fiber networks in major cities and acquiring wireless spectrum to increase network capacity and performance. Today, Verizon’s wireless services account for approximately 70% of its revenue (serving over 90 million postpaid and 20 million prepaid phone customers), making it the country’s largest wireless carrier. Verizon also offers fixed-line operations with local networks in the Northeastern U.S., serving over 30 million homes and businesses and nine million broadband customers. In early September, Verizon announced the $20 billion all-cash acquisition of Frontier, the largest pure-play fiber internet provider in the U.S. Upon closing (expected within 18 months), Verizon’s fiber network will expand to 31 states…” (Click here to read the full text)

While we acknowledge the potential of Verizon Communications Inc. (NYSE:VZ) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey