VZ's shares continued to underperform in the first few trading days of the current month, as the company's stock price declined by 2% from $46.19 as of July 29 to $45.33 as of August 3. Also, VZ set a new 52-week low of $43.77 during intra-day trading on July 22, 2022, which was when it announced its second-quarter financial results. More importantly, this represented a significant underperformance relative to the S&P 500 which actually rose by 8% in the prior month. Verizon's stock price dropped by 10% for the month of July. Why Did Verizon Stock Drop So Much In July? But Verizon isn't deserving of a Sell rating, as its valuations have already de-rated to factor in the weak outlook for the company. I have an unfavorable view of VZ's future financial outlook that is supported by the company's management guidance and the sell-side's consensus numbers. Verizon's shares didn't do well in July, as its Q2 2022 EPS growth and key operating metrics were disappointing. I offer an update of my views on Verizon Communications in light of the stock's poor July 2022 share price performance. I discussed VZ having characteristics of a value stock in my earlier article for the company written on June 20, 2021. My investment rating for Verizon Communications Inc.'s ( NYSE: VZ) shares is a Hold.
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