Expert Outlook: Verizon Communications Through The Eyes Of 7 Analysts

Throughout the last three months, 7 analysts have evaluated Verizon Communications VZ, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over 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 $42.71, accompanied by a high estimate of $46.00 and a low estimate of $38.00. A decline of 2.93% from the prior average price target is evident in the current average.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Verizon Communications's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Verizon Communications. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Verizon Communications compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Verizon Communications's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Verizon Communications analyst ratings.

Get to Know Verizon Communications Better

Verizon Communications is primarily a wireless business (it provides about 70% of service revenue and nearly all operating income). It serves about 92 million postpaid and 22 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 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.

Financial Milestones: Verizon Communications's Journey

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Negative Revenue Trend: Examining Verizon Communications's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -2.64% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: Verizon Communications's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.28% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Verizon Communications's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.94%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Verizon Communications's ROA excels beyond industry benchmarks, reaching 1.25%. This signifies efficient management of assets and strong financial health.

Debt Management: Verizon Communications's debt-to-equity ratio is below the industry average. With a ratio of 1.76, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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