Demystifying Verizon Communications: Insights From 4 Analyst Reviews

4 analysts have expressed a variety of opinions on Verizon Communications VZ over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Verizon Communications and provided 12-month price targets. The average target is $48.88, accompanied by a high estimate of $55.00 and a low estimate of $45.00. This upward trend is apparent, with the current average reflecting a 2.09% increase from the previous average price target of $47.88.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Verizon Communications among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Verizon Communications. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Verizon Communications compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Verizon Communications's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Verizon Communications's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Verizon Communications analyst ratings.

All You Need to Know About Verizon Communications

Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 30 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks. Verizon agreed to acquire Frontier Communications in September 2024.

Verizon Communications: Financial Performance Dissected

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Verizon Communications's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 1.57%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Verizon Communications's net margin is impressive, surpassing industry averages. With a net margin of 14.03%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Verizon Communications's ROE excels beyond industry benchmarks, reaching 5.12%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Verizon Communications's ROA excels beyond industry benchmarks, reaching 1.31%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 1.7, Verizon Communications faces challenges in effectively managing its debt levels, indicating potential financial strain.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.