Verizon shares close higher on Tuesday, US employees will now earn minimum wage of $20 per hour

Verizon Communications Inc (VZ) said earlier this week it would increase the minimum pay of its new and existing customer service, retail and inside sales employees to $20 per hour in light of a tight labor market and surging inflation.

The wireless carrier also said that retail specialist and assistant manager roles in some regions across the United States would be offered a sign-on bonus.

“These changes are the direct result of employee feedback and will help us remain an attractive employer in this competitive environment,” Krista Bourne, chief operating officer at Verizon Consumer Group, was quoted as saying by Reuters.

Verizon shares closed higher for the sixth time in the past ten trading sessions in New York on Tuesday. The stock went up 0.67% ($0.36) to $53.75, after touching an intraday low at $53.46 and an intraday high at $53.90 respectively.

Shares of Verizon Communications Inc have risen 3.44% so far in 2022 compared with a 6.38% loss for the benchmark index, S&P 500 (SPX).

In 2021, Verizon Communications Inc’s stock went down 11.56%, thus, it underperformed the S&P 500, which registered a 26.89% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 4 out of 7 surveyed investment analysts had rated Verizon Communications Inc’s stock as “Hold”, while 3 – as “Buy”. The median price target on the stock stands at $60.43.