Verizon Communications Inc. (VZ): The Risk of a Hundred Billion Dollar Deal

And speaking of bad bargains… As of Thursday’s close, Verizon Communications Inc. (NYSE:VZ) is the second best-performing Dow stock this year (after Hewlett-Packard Company (NYSE:HPQ) and The Walt Disney Company (NYSE:DIS)), with a 23% year-to-date return. That has pushed the stock’s valuation to more than 18 times the estimate for the next 12 months’ earnings per share, which looks pretty rich. On the bright side for shareholders, if Verizon does a cash and stock deal with Vodafone, it will be paying with what looks like an overpriced currency.

The article Verizon: The Risk of a $100 Billion Deal originally appeared on

Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned, and neither does The Motley Fool. You can follow Alex on LinkedIn.

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