Verizon Communications stock has normally underperformed the S&P 500. But given solid fundamentals, the high dividend yield suggests the stock's valuation may be too low.
Despite lucrative promotional offers to entice customers, Verizon (VZ) appears to be treading in the middle of the road and investors could be better off if they trade with caution.
Verizon (VZ) reported earnings 30 days ago. What's next for the stock?
Verizon's Q2 performance showed positive trends, including a positive dynamics in operating metrics and a 2.8% YoY growth in non-GAAP EBITDA. Moderating CapEx and improving free cash flow indicate improved dividend safety and future growth probability. Verizon's dividend yield and growth record are the best-in-class among the three largest U.S. telecom players.
The telecom incumbent is generous with its payout on nearly every measure. It's a blue chip stock that pays a high-yield dividend.
Recently, Zacks.com users have been paying close attention to Verizon (VZ). This makes it worthwhile to examine what the stock has in store.
Verizon Communications Inc. provides communication and technology services globally. Previous analysis showed VZ as an attractive investment for dividend investors. Today we have updated our model with more up-to-date dividend growth assumptions and required rate of returns. The updated model estimates fair value of VZ stock between $46 and $74 per share.
In his view, the stock has no less than 26% upside. Verizon has slumped since releasing its latest quarterly earnings.
Verizon (VZ) collaborates with the National Labor Relations Board to upgrade the latter's network infrastructure with advanced security features and cloud-based services.
Verizon Communications Inc. (NYSE:VZ ) Oppenheimer 27th Annual Technology, Internet & Communications Conference August 12, 2024 12:25 PM ET Company Participants Kyle Malady - EVP & CEO of Verizon Business Group Conference Call Participants Tim Horan - Oppenheimer & Co. Inc. Tim Horan Good afternoon, everybody. Tim Horan, the Cloud and Communications Analyst here at Oppenheimer.
Verizon's recent earnings were mixed, with in-line numbers for EPS but missing revenue expectations. Despite the initial share price drop, investors are bidding VZ shares back up, but they still present an attractive value to long-term investors. The Company remains focused on paying down debt and continuing on with a strong dividend yield of ~6.5% that's set to continue to grow.
Telco businesses faced significant pressure with income investors rotating towards other risk-free alternatives. Verizon Communications Inc. is a quality business with a dirt-cheap valuation, primed to benefit from great rotation as the Fed cuts interest rates. Q2 earnings were solid, driven by strong profitability with a new phone upgrade cycle on tap to drive top-line growth.