Is Verizon a good stock to hold long term?
"The longer term fundamentals of
With its 4-star rating, we believe Verizon's stock is undervalued compared with our long-term fair value estimate of $54 per share, which equates to roughly 8 times our 2024 EBITDA forecast. That valuation also implies an 8.2% free cash flow yield based on the firm's performance in 2023.
To buy or not to buy Verizon stock
FCF indicates Verizon's ability to fund its high-yield dividend, currently over 6%. In 2023, FCF reached $18.7 billion, up from $14.1 billion in 2022. Thanks to its FCF strength, Verizon increased its dividend for the 17th consecutive year last fall.
Verizon Communications Stock Prediction 2030
In 2030, the Verizon Communications stock will reach $ 37.99 if it maintains its current 10-year average growth rate. If this Verizon Communications stock prediction for 2030 materializes, VZ stock will grow -9.45% from its current price.
Verizon stock price stood at $40.87
According to the latest long-term forecast, Verizon price will hit $45 by the end of 2024 and then $55 by the middle of 2025. Verizon will rise to $60 within the year of 2026, $70 in 2027, $75 in 2028, $90 in 2029, $95 in 2031, $100 in 2032 and $110 in 2034.
Verizon's low PE ratio of about 7.7 indicates it may be undervalued. A PE ratio of 15 has been a historical benchmark, but the broader market now has a PE of 24 or so. T-Mobile's PE is higher than the market average, while the ratio at AT&T is lower than that of Verizon.
VZ Stock Forecast FAQ
Based on analyst ratings, Verizon's 12-month average price target is $44.71. What is VZ's upside potential, based on the analysts' average price target? Verizon has 12.42% upside potential, based on the analysts' average price target.
Verizon swung to a loss of $2.57 billion or 64 cents a diluted share in the fourth quarter of 2023. The company's earnings were dragged down by a $7.8 billion loss on account of special items. Revenue of $35.1 billion was better than expected, but lower compared to $35.25 billion for the same period last year.
Verizon's total unsecured debt as of the end of the year was $128.5 billion, a $2.1 billion increase sequentially, but $2.1 billion lower year over year. The company's net unsecured debt1 at the end of the year was $126.4 billion, a $4.2 billion increase from third-quarter 2023, but $1.6 billion lower year over year.
Verizon's superior FCF puts it in a stronger position than AT&T to continue reducing debt and maintain its dividend. Verizon's FCF increase is thanks in part to growth in its wireless-service sales, which hit $76.7 billion in 2023, a year-over-year increase of 3.2%.
Is Verizon stock a buy sell or hold?
- Hold. Zacks' proprietary data indicates that Verizon Communications Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the VZ shares relative to the market in the next few months.
| Stock | Dividend yield |
|---|---|
| Essential Utilities Inc. (WTRG) | 3.4% |
| Northwest Natural Holding Co. (NWN) | 5.4% |
| Hormel Foods Corp. (HRL) | 3.4% |
| Verizon Communications Inc. (VZ) | 6.7% |
| Name | Hold | Shares |
|---|---|---|
| Vanguard Group Inc | 8.33% | 350,050,212 |
| Blackrock Inc | 8.28% | 348,133,587 |
| State Street Corp | 4.36% | 183,193,191 |
| Charles Schwab Investment Management Inc | 2.21% | 93,005,087 |
On average, Wall Street analysts predict that Verizon's share price could reach $44.73 by Feb 20, 2025. The average Verizon stock price prediction forecasts a potential upside of 11.9% from the current VZ share price of $39.97.
Verizon stock (symbol: VZ) underwent a total of 6 stock splits. The most recent stock split occured on July 2nd, 2010.
Verizon Communications (VZ)
The company has a long record of dividend growth, with 29 straight years of increases. At a current 6.7% annualized yield, Verizon's dividend is over 500% higher than the 1.3% average yield of the S&P 500.
Verizon's dividend is safe
Because phone subscriptions are essential in today's digital society, Verizon's cash flows are steady. This allows the company to pay an above-average dividend, making it more akin to a utility company. Furthermore, Verizon's dividend payout ratio is fairly low compared to historical levels.
Conclusion. Verizon Communications Inc (NYSE:VZ), despite its attractive valuation, exhibits signs of being a potential value trap. The company's low Altman Z-Score and decreasing asset turnover ratio suggest potential financial distress and declining operational efficiency.
Blue chip stocks have long been synonymous with stability and reliability. Named for the most valuable poker chips, these stocks supposedly represent the crème de la crème of the corporate world, companies like Disney, General Motors and Verizon.
Wall Street expects Tesla earnings per share of just $2.96 a share in 2024, according to FactSet. That would be a around a 5% decline vs. last year's $3.12. That was a 23% decline vs. 2022. Analyst project a solid increase in 2025 to $4.13 a share.
What is Verizon stock price to book value?
According to Verizon's latest financial reports the company has a price-to-book ratio of 1.88. The price-to-book ratio is a way to measure how much the stock market thinks a company is worth compared to how much the company says its assets are worth on paper.
The Probability of Bankruptcy of Verizon Communications Inc (VZ) is 20.7% . This number represents the probability that Verizon will face financial distress in the next 24 months given its current fundamentals and market conditions.
Verizon's plan to cull $10 billion in costs from its operations is getting very real now. First, thin out the ranks of old, middle-manager types. Verizon is offering 44,000 of its management employees a buyout deal as part of a four-year, $10 billion cost-cutting scheme.
The bulk of Verizon's market pain last month sprung from a disappointing second-quarter report. Big Red fell slightly short of Wall Street's earnings estimates while meeting revenue expectations with a completely flat year-over-year comparison.
Both of these stocks are among the highest-yielding stocks. Although AT&T is a more established dividend payer, Verizon is a member of the Dow Jones Industrial Average, which also gives investors a sense of stability about its value as a long-term investment.
