Verizon Communications Inc Stock Forecast:
16 analysts have forecasted a target price of USD 47.52 for Verizon Communications Inc over the next 12 months and have rated the stock as “Buy”. Stock Target Advisor’s analysis of the company is “Slightly Bullish” based on 6 positive signals and 3 negative signals. The last closing stock price for Verizon Communications Inc was USD 39.63. The stock price has decreased by 5.33% over the past week, increased by 3.18% over the past month and decreased by 25.45% over the last year.
Verizon News:
Verizon Communications (VZ:NYE) reported better-than-expected fourth quarter revenues. It exceeded forecasts for new wireless subscribers, despite previous year’s price hikes. However, the company forecasted lower full-year profits due to decreasing customer demand.
The company’s adjusted non-GAAP earnings for Q4 were $1.19 per share, a 9.2% decrease from the same period the previous year, and in line with analysts’ estimates. Revenues increased by 3.5% to $35.3 billion, slightly above analysts’ predictions of $35.1 billion.
Verizon added 217,000 bill-paying customers in the quarter, surpassing the expected 200,400 forecasted by FactSet. For the 2023 financial year, Verizon expects adjusted earnings of $4.55 to $4.85 per share and wireless revenue growth of 8.5% to 9.5%.
Positive Fundamentals:
Verizon Communications is a highly valuable company in its sector, with a large market capitalization. This can indicate stability in the company, which is a positive factor for investors. Additionally, the stock’s annual returns have been consistent and low in volatility, which is also a positive sign. The company also excels in terms of its return on equity and capital utilization, both of which have been better than its peers in recent quarters. Furthermore, the company has had positive cash flow and free cash flow in recent quarters, indicating financial stability. Overall, these factors suggest that Verizon Communications is a strong investment option with a history of stable returns and strong financial performance.
Negative Fundamentals:
Verizon Communications is trading at a relatively high price compared to its peers when looking at its price to cash flow ratio. This means that the stock may be overvalued when considering the cash flow it generates. Investors should exercise caution when considering buying the stock. Additionally, the company is highly leveraged, meaning it has a high amount of debt relative to its equity. This could be a concern for investors, but it is important to note that the company may be leveraging its debt in order to aggressively grow its business. Lastly, the company has shown below median revenue growth in the past five years compared to its sector, which could be a red flag for investors looking for strong growth prospects. It’s worth noting that these are some of the factors that investors may not like about Verizon Communications stock and they should do their own research and analysis before making any investment decisions.
