Verizon Communications
NASDAQ: VZKey stats
Price chart
About Verizon Communications
Telecommunication
Company profile
- IPO date
- Feb 15, 1984
- Website
- www.verizon.com
Communication Services peers
How VZ compares to other large companies in the same sector.
| Company | Price | Today | Market cap | P/E |
|---|---|---|---|---|
NFLX Netflix Inc. | $103.03 | +0.96% | $436.49B | 39.61 |
TMUS T-Mobile US | $195.73 | -0.92% | $215.65B | 19.62 |
T AT&T Inc. | $26.47 | -1.38% | $184.78B | 8.42 |
DIS Walt Disney Company | $99.19 | -0.60% | $175.68B | 14.34 |
CMCSA Comcast Corporation | $27.94 | -1.31% | $100.49B | 5.02 |
Wall Street analyst ratings
DollarScout analysis
Editorial, not advice. See our methodology.
Bull case
Verizon stands out with its extensive network infrastructure, critical for maintaining connectivity in everyday life. Its strong position in the telecom industry is bolstered by continued investment in 5G technology, promising faster and more reliable internet access than previous generations. This positions Verizon well to capture growing demand for high-speed mobile and internet services. Additionally, Verizon's low beta of 0.2525 indicates the stock's relatively low volatility, making it less susceptible to market swings. With a P/E ratio of 11.31, the valuation is attractive, offering potential for capital gains as the market recognizes its stable revenue flow and strategic investments. The analyst consensus to buy further underscores confidence in its growth strategy and dividend sustainment.
Bear case
Verizon faces stiff competition from AT&T and T-Mobile, which could pressure its market share and pricing power. The telecom sector is capital-intensive, and Verizon's ongoing 5G development requires significant investment that may weigh on profit margins. Regulatory risks also loom, as the telecom industry is a frequent target for government scrutiny and action. Furthermore, while the dividend yield is appealing, a high payout amid rising interest rates could strain cash flows if revenue growth doesn't meet expectations. A bullish price trend that fails to materialize could thwart investor returns if growth expectations are not met.
Who should buy VZ
Long-term dividend investors seeking stable income with a moderate risk tolerance might find VZ appealing. Its solid dividend yield and low beta make it suitable for those looking for consistent income over a 5-10 year horizon. It's a match for portfolios needing a less volatile anchor.
Key risks
- Increased competition and price wars could erode market share. - Heavy capital expenditure requirements for 5G may impact profitability. - Potential regulatory changes could add operational challenges. - High dividend payments amidst rising interest rates could strain cash flows.
Where to buy VZ
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Recent VZ news
Verizon Communications Inc. (NYSE:VZ) is among the stocks Jim Cramer reviewed while discussing the Iran ceasefire that triggered a relief rally. Cramer noted that it is “too hard to figure this one out,” as he remarked: Now, lots of things are loved on an update, but as you imagine, there are not a lot of […]
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