Verizon Communications Stock: Bargain Buy or Value Trap?

It can sometimes be difficult to determine whether a stock is really a cheap buy or if it's a value trap. The difference comes down to how strong the business is, and usually reflects whether the stock is doing badly due to market or industry conditions, or if its struggles are a result of the company's own poor performance.That's why just screening for stocks that trade at low multiples can be risky, since it could result in you buying stocks that aren't that great to own. Multiples change over time. If a business is in rough shape and its earnings worsen, that cheap-looking stock could end up looking expensive in the future.Verizon Communications (NYSE: VZ) is a cheap-looking stock today. It's trading at 18 times earnings, and when you look at analyst expectations for next year, then its forward price-to-earnings multiple is less than 9. The low valuation in conjunction with the stock's poor performance in recent years may have investors wondering if this is really a good investment, or if it is just a value trap. Below, I'll try to answer that question.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool