Chasing 6%-yielders with single-digit price-to-earnings (P/E) ratios can be ultra-risky, especially if you pay less attention to how the business behind the stock is actually faring.
VZ is well-positioned to bridge the digital divide and enhance the connectivity landscape nationwide with steady infrastructure investments.
Verizon is scheduled to report its FY Q3 earnings report on October 22, 2024. In terms of business operations, I will pay close attention to updates on its wireless equipment revenue and upgrade volumes. Another key issue I will tune into is debt management and capital allocation.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Verizon (VZ), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.
Verizon stock's attractive valuation and solid profitability have likely driven its recent outperformance. The Frontier acquisition is expected to enhance Verizon's wireless and broadband market position. Income investors should find VZ's forward dividend yield of more than 6% attractive, as the Fed could cut more through 2025.
In the latest trading session, Verizon Communications (VZ) closed at $43.74, marking a +1.27% move from the previous day.
Verizon (VZ) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The company has flaws, but the stock could appeal to certain investors as interest rates decline.
Verizon's strategic acquisition of Frontier Communications for $20 billion aims to expand its fiber broadband footprint, potentially enhancing its competitive edge in rural markets. The Q2 2024 results highlighted a 0.6% revenue increase to $32.8 billion, driven by a 3.5% rise in wireless service revenue, despite a 13% drop in wireless equipment sales. Despite the recent decline in adjusted EPS, Verizon's strong cash flow and improved balance sheet, with net unsecured debt reduced to $122.8 billion, support its growth strategy.
Verizon remains a buy for income, with the potential for capital appreciation if cash flow ramps up and leverage is reduced. Q3 earnings report on October 22nd is critical; strong cash flow and leverage progress could drive the stock higher. Our expectations for the revenue and cash flow print, if hit, can drive shares higher.
Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
Verizon Communications (VZ) reachead $44.01 at the closing of the latest trading day, reflecting a +0.39% change compared to its last close.