Cracking The Code: Understanding Analyst Reviews For Verizon Communications

In the latest quarter, 7 analysts provided ratings for Verizon Communications VZ, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $43.29, along with a high estimate of $52.00 and a low estimate of $36.00. Marking an increase of 1.62%, the current average surpasses the previous average price target of $42.60.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Verizon Communications. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Verizon Communications compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Verizon Communications's stock. This comparison reveals trends in analysts' expectations over time.

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.

Get to Know Verizon Communications Better

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 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 29 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.

Unraveling the Financial Story of Verizon Communications

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Verizon Communications's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 0.21%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 13.95%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.93%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Verizon Communications's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.21%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Verizon Communications's debt-to-equity ratio stands notably higher than the industry average, reaching 1.86. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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