Assessing Verizon Communications: Insights From 5 Financial Analysts

Across the recent three months, 5 analysts have shared their insights on Verizon Communications VZ, expressing a variety of opinions spanning 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 set 12-month price targets for Verizon Communications, revealing an average target of $45.7, a high estimate of $51.00, and a low estimate of $42.00. This upward trend is evident, with the current average reflecting a 0.44% increase from the previous average price target of $45.50.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Verizon Communications among financial experts becomes clear 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: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Verizon Communications. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey 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.

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.

Discovering Verizon Communications: A Closer Look

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.

Breaking Down Verizon Communications's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Verizon Communications's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 0.61%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Verizon Communications's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.0% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Verizon Communications's ROE stands out, surpassing industry averages. With an impressive ROE of 4.82%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Verizon Communications's ROA excels beyond industry benchmarks, reaching 1.21%. This signifies efficient management of assets and strong financial health.

Debt Management: Verizon Communications's debt-to-equity ratio surpasses industry norms, standing at 1.8. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.