Verizon Communications Inc. (VZ:NYE) Analysts rate as a Hold, Fundamentals as Slightly Bullish

STA Research
by: STA Research

Analysts rates Verizon stock forecast with a consensus Hold rating with an average Verizon stock price target of $53.56 per share over the next 12 months.

Moffett Nathanson downgraded the Verizon stock rating to Underperform and lowered the Verizon stock price target to $41 from $47.

Based on the Verizon stock forecast from 16 analysts, the average analyst Verizon stock price target is USD 53.56 over the next 12 months. Verizon Communications Inc’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Verizon stock dividend is Slightly Bullish, which is based on 7 positive signals and 5 negative signals. At the last closing, Verizon stock price was USD 44.19Verizon stock price has changed by -0.59% over the past week, -6.09% over the past month and -20.19% over the last year.

Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. As of December 31, 2021, it had approximately 27 million wireless retail postpaid connections and 477 thousand wireline broadband connections. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

Verizon stock dividend has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility:

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity:

Verizon stock forecast has shown that the company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

Verizon stock forecast has shown that the company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

Verizon stock price history shows that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

Verizon stock price history shows that the company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Overpriced on cashflow basis:

Verizon stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Verizon stock dividend news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth:

Verizon stock price history has shown below median earnings growth for the company in the previous 5 years compared to its sector

Low Revenue Growth:

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth:

Verizon stock dividend has shown below median growth in the previous 5 years compared to its sector.

 

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