Erste Group Sees Profit Growth Ahead, Upgrades Verizon (VZ) to Buy

Verizon Communications Inc. (NYSE:VZ) is included among the 15 Cheapest Stocks with Highest Dividends.

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On April 2, Erste Group upgraded Verizon Communications Inc. (NYSE:VZ) to Buy from Hold. The analyst said Verizon’s profitability is “significantly higher than that of most of its competitors” and expects operating profit to increase over the next two years.

On March 30, Reuters reported that a federal judge granted Verizon Wireless a preliminary injunction blocking T-Mobile from running ads that promised consumers more than $1,000 in annual savings for switching carriers. U.S. District Judge Lewis Kaplan said Verizon is likely to succeed on the merits of its claim that T-Mobile’s “Save Over $1,000” campaign amounted to false advertising and could cause irreparable harm.

He also said the injunction supports the public interest by promoting truthful and accurate advertising, “ensuring that what consumers see is what they get.” T-Mobile and its lawyers did not immediately respond to requests for comment. In its February 4 lawsuit, Verizon argued that T-Mobile compared its promotional rates against Verizon’s standard rates. It also claimed that T-Mobile overstated the value of services that “the other guys leave out.”

Verizon Communications Inc. (NYSE:VZ) operates as a holding company. Through its subsidiaries, it provides communications, technology, information, and streaming services to consumers, businesses, and government clients.

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