Jim Cramer Recommends Selling These 5 Stocks

3. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 53

In September 2023, while answering a call during his Lighting Round segment on CNBC, Jim Cramer said that Verizon Communications Inc. (NYSE:VZ) is “dead money.” In August Cramer had said that Verizon Communications Inc. (NYSE:VZ) stock was going “nowhere.”

“Verizon to me has lost its way, I don’t think its management is very crisp anymore, and I don’t care where you bought it, I care where it’s going, and I think it’s going nowhere.”

As of the end of the second quarter of 2023, 53 hedge funds tracked by Insider Monkey had stakes in Verizon. The biggest stakeholder of the company was Ric Dillon’s Diamond Hill Capital which owns a $250 million stake in the company.

Ariel Global Fund made the following comment about Verizon Communications Inc. (NYSE:VZ) in its Q2 2023 investor letter:

“Global communications and technology leader, Verizon Communications Inc. (NYSE:VZ), also weighed on performance in the period on mixed earnings results. Consolidated revenues came in slightly below expectations, EBITDA was in-line and management reiterated full year 2023 guidance. Although share price action has been weak, we find the company valuation to be compelling and the approximately 7% dividend yield to be both stable and secure. We view Verizon as one of the best positioned telecoms in the world. Looking forward, we expect the free cash flow to grow significantly in the years ahead as Verizon moves past the secular peak in 5G capital spending.”