After a weak performance in 2005, Verizon (VZ) is a stock of interest for 2006. Basically I see VZ as a nice GARP (growth at a reasonable price) stock with a 5% dividend yield and upside potential driven by new products and services and a re-evaluation by the market. Growth: Benchmark-setting subscriber metrics (high growth, low churn, good ARPU). Margins: 19% operating margins. Valuation: 1.7 Revenue/EV and 12.2 forward P/E. New products and services: fiber to home, content delivery, and bundled services. Current income: 5% dividend yield. Sentiment: Potential for perception/sentiment shift as people begin to see VZ in a new light. See this link for yesterday’s earnings report. Cheers!