At MoneyMangoose, we are group of professionals having diverse background from Financial Sector. With 18 years exposure to market ups and down, we are sharing our personal view on the below stock trading at The New York Stock Exchange (In short known as NYSE), Dowjones & NASDAQ
In this article, we will discuss our thoughts on Verizon Communications and how its forecast compares to previous performance. This topic will cover both Fundamental and Technical Assessment.
Introduction
Verizon Communications Inc. is a telecommunications provider of various voice and data services across wired and wireless networks, as well as internet, television, and home phone services. The union of Bell Atlantic and GTE resulted in the establishment of the business in 2000. It has its headquarters in New York City and conducts business both domestically and abroad. One of the biggest telecommunications firms in the world, Verizon caters to a wide range of clients, including people, small businesses, and big corporations.
What is the Verizon Communications History
Verizon Communications Inc was formed by the merger of Bell Atlantic and GTE Corporation in 2000. The Bell Telephone Company of Pennsylvania and the New Jersey Bell Telephone Company merged to form Bell Atlantic in 1984. GTE Corporation was a telecommunications company that began as the General Telephone Company in the 1920s.
Verizon has a long and illustrious history in telecommunications. Following the merger, the company quickly grew to become one of the largest telecommunications companies in the United States, providing a diverse range of services such as wireless communications, broadband, and internet services. Verizon has made a number of acquisitions over the years in order to expand its business and increase its market share. It has also made significant investments in research and development in order to remain at the forefront of the telecommunications industry. Verizon is now a global telecommunications leader, with a strong presence in the United States and around the world.
What PRODUCTS do Verizon Communications Make?
Verizon Communications is a telecommunications company, not a manufacturer of physical goods in the traditional sense. Customers are instead offered a variety of communication and information services, such as wireless and broadband services, television and video services, and internet of things (IoT) solutions. Verizon provides the following specific products and services:
Wireless services
Verizon provides a wide range of wireless plans and devices, including smartphones, tablets, and other mobile devices.
Broadband services
Verizon’s FiOS network provides high-speed internet access to homes and businesses.
Television and video services
Verizon Fios TV and Go90 platforms provide television and streaming video services. Verizon provides a range of IoT solutions, such as connected devices, sensors, and analytics, to help businesses and organizations manage and optimize their operations.
When Did Verizon Communications IPO?
The company’s “Initial Public Offering (IPO)” was introduced in 3rd July 2000. The IPO price was set at $30 per share, with 358 million shares sold. The company raised a total of $10.7 billion from the IPO. Verizon’s stock has been traded on the NYSE under the ticker symbol “VZ” since it went public.
Fundamental Analysis of Verizon Communications
In this segment, we will precisely observe the Fundamental of the Verizon Communications to have fair understanding up-to what level it is feasible to invest in Verizon Communications
| Stock Details | Performance |
| Previous Close | 40.12 |
| Open | 40.54 |
| Market Cap | 171.44 B |
| Beta (5Y Monthly) | 0.36 |
| PE Ratio (TTM) | 8.73 |
| EPS (TTM) | 4.68 |
| Forward Dividend & Yield | 2.61 (6.62%) |
What is Verizon Communications’s Total Revenues?
- Verizon Communications has given continuous growth by regular investing to its research & development for better solution. The revenue is the total amount of income that a company generates by the sale of goods or services.
- Total Annual Revenue increased from $131.86 B in 2019 to $128.29 B in 2020, and increased by 4.15% to $133.61 B in 2021 and as per Verizon Communications’s latest financial reports the company’s current revenue (TTM) is $135.65 B. This figure includes revenues from the following business segments:
• Wireless: $87.1 billion
• Wireline: $22.9 billion
• Other: $21.9 billion
What is Verizon Communication’ Net Income?
- Net Income rose from $19.26 B in 2019 to $17.80 B in 2020, and around $22.06 B in 2021 with increase of 23.95% with Year 2022 it is around US$19.29 B
What is Verizon Communications’ EPS for 2022?
- As per Nasdaq official report the total revenue for the Fiscal year 2022 is $4.60, whereas in Fiscal year 2021 it was $ 5.32. and In Fiscal Year 2020 it was $4.3 which states not good growth but consistent.
What is Verizon Communications’s Share Price History 52 Week?
- Verizon Communications has reached to the 52 Week High at $55.51 whereas the 52 week low to $34.55.
*What Is the Importance of the 52-Week High & the 52-Week Low Prices?
- The benefit of knowing the high and low of 52 weeks of any stock is to provide the Volatility in Stock and which gives idea how much stock can move upside or downside to take the trade depending upon the market situation.
- It also provides the Trends, which mean in what “Trend” the stock can move if fall in expected forecast with the help of trendline.
Technical Analysis of Verizon Communications
According to the technical Chart of Verizon Communications, if taking weekly perspective of the Chart as per Price Action movement, following the collapse from $63.21 to $33.64, from where it rebounded from Support. The large bullish candle that was seen omn 17/10/2022 week serves as a buying signal, although good volume. Its “First Target “it to reach till its resistance point of $42.89 and if it crosses this level it reach to “Second Target” $46.44. The instrument has already reached from oversold zone to overbought zone and RSI is also in an advantageous position.
The stock is moving upward from the support trendline and have shown bullish trend with “Double Bottom pattern” and will continue to rise further until any specific candle comes to show its weakness. Presently it is still in negative trend as per the Supertrend indicator and does not give buying signal, however the bullish trend-line pattern gives buying signal until and sign of bearish candle.
Conclusion: From 01/12/2023 in weekly movement, it has displayed a trend reversal to positive side from here, and it may rise further.
*The viewpoint expressed here is just for informational purposes and is personal. In the above shared insight, the author makes no claims or offers any advice to purchase.
Ref: Investing.com Link: https://invst.ly/zyn5r
When will the Verizon Communications split?
Since Verizon Communications was registered, Verizon did not go through a corporate split or separation
Verizon Communications (VZ) Price Prediction
Verizon Communications’ stock price recently reached the average yearlong target of $45.00 set by three well-known analysts, representing a potential 12.16% increase from its closing price on January 20, 2023. This potential increase is based on a $71.00 high estimate and a $37.00 low estimate.
Verizon Communications Stock (VN) Price Prediction 2023
The stock price of Verizon Communications has risen 12.06% in the last two years, from $53.82 to $60.31. It is predicted that fair value will rise 4.45% to $63.00 over the next year.
Verizon Communications (VN) Price Prediction 2024
VZ’s revenue is expected to grow at a 1.76% annual rate, which is not exceptional. Where it is expected that the stock price in 2024 shall reach to the level of $65.80-$68.73.
Verizon Communications Stock (VN) Price Prediction 2025
Earnings at Verizon Communications are expected to grow faster (5.35% per year) than risk-free savings (3.8%). It is expected that the Verizon Communications stock shall reach to the level of $69.55- $70.10 at the year-end.
Verizon Communications Stock (VN) Price Prediction 2030
Verizon’s forecast annual earnings growth rate of 5.35% is not expected to exceed the average forecast earnings growth rate of the US Telecom Services industry of 35.42%, nor is it expected to exceed the average forecast earnings growth rate of the US market of 23.46%. Where the price prediction of VN Stock shall be range bound to $71.47-$71.98.
Take Away / FAQ
What will Verizon Communications stock be worth in 5 years?
As reported by Stockforcast as of 4 January 2022, Verizon Communications was a ‘moderate buy’ withhold to present holding, based on the views of 17 analysts compiled. Of the 20 analysts polled it a ‘Hold’ for the present scenario and watch closely on any management movement favorable to the stock strength.
The consensus price target was that the stock could reach to the moderate growth of 69.98 %
Wallet Investor predicted it could be more bearish hence to be careful for long term investment. (Wallet Investor)
Is Verizon Communications Dividend Stock?
Yes, Verizon Communications is a dividend-paying stock. The company has a long history of paying dividends to its shareholders, and it has consistently increased its dividend payments in recent years. At the current time, Verizon’s dividend yield is around 4.2%, which is higher than the average dividend yield of the S&P 500 index.
Is Verizon Communications’s stock a good buy right now?
As per Technical View by the author for the short term, it can be bought. The Stock is already moving in the upside direction with double bottom pattern and expected to be continued till its first target achieved.
Is Verizon Communications‘s (VN) stock undervalued?
Post done the in-depth study on both Fundamental and Technical Analysis, Fundamentally the Stock is overvalued, where the intrinsic value of the Stock should be at Base Case scenario should be 107.10 USD whereas compared to the current market price of 60.18 USD, Verizon Communications is under-valued by 34%.
*The IV is calculated as the average of the two valuation methods:
DCF Value 51.17 USD undervalued by 22%
Relative Value 69.2 USD undervalued by 42%
On the Other side, Technical Analysis, it is giving the buying signal for short term with given target as above.
Conclusion
Verizon is currently one of only three companies in the United States that has built a nationwide 5G wireless network. According to analysts, 5G will be in high demand, and each company has invested tens of billions of dollars in this endeavor. As a result of these two factors, AT&T (T 1.79%) and T-Mobile US (TMUS -0.69%) are likely to remain Verizon’s only significant competitors. However, how Verizon performs in comparison to these companies, as well as the evolution of 5G, will have a significant impact on where Verizon stock trades in five years.
The stock is already moving in recovering mode and is expected to gain 15-20 % near in short term until any impact on market. However, for long term, it is expected to be bearish and not recommended to hold the position. Besides, Verizon Communications has shown downtrend for long time however now seem in recovery mode. One may invest for short term post due diligence.
Disclaimer
The information shared on the above article or the website is for information purposes only. It is wise to conduct independent research and/or consult with a knowledgeable professional before making any ficonsultcisions. The Author or Website Administrator shall not be liable for any decision taken for the Investment based on shared information.