Stock Price & Analysis

Based on the provided data, I'll analyze whether to buy or sell Verizon (VZ) stock in two concise sentences:

Given Verizon's attractive 7% dividend yield, strong free cash flow coverage of dividends, and upcoming earnings release on January 24th, but considering its flat revenue growth and significant debt load that will increase with the pending $20 billion Frontier acquisition, maintaining current positions or initiating small positions for income-focused investors is reasonable while avoiding large new commitments until seeing Q4 results and 2025 guidance.

Based on the provided data and current market conditions, here's the price prediction for Verizon (VZ) stock in 2025:

VZ stock is expected to reach $42-44 by end of 2025, representing a potential upside of 8-13% from current levels around $38.85. This projection is supported by three key factors:

Growth Catalysts

• The company's AI and 5G edge computing initiatives are positioned to tap into a market forecasted to grow from $27 billion in 2024 to $270 billion by 2032
• The pending Frontier Communications acquisition will nearly double VZ's broadband connections by adding estimated 10 million homes by 2026

Financial Strength

• Strong free cash flow of $14.5 billion through Q3 2024 easily covered $8.4 billion in dividend payments
• Leverage ratio improved to 2.5 from 2.6 year-over-year, with a target of 1.75-2.0 range

Valuation Support

• Currently trades at just 8x forward earnings, significantly below competitors AT&T and T-Mobile
• Offers an attractive 7% dividend yield with 18 consecutive years of dividend increases

The technical analysis shows VZ is currently trading near support levels around $38, with next resistance at $40.14 based on Fibonacci levels. RSI at 38.03 indicates slightly oversold conditions but not extreme levels.

This prediction assumes continued execution on cost efficiency initiatives and no major deterioration in the competitive landscape or macroeconomic conditions. The main risks include high interest rates impacting debt costs and intense industry competition limiting pricing power.

The S1 support level for VZ Stock is $37.78 ,The R1 resistant level for VZ Stock is $40.14.

As of the end of day on 2025-01-24, the price of VZ Stock was $39.53.

The target price for VZ Stock according to analyst rating is 46.46, with the highest price target at 51.00 and the lowest at 42.00. Analysts have a Moderate Buy rating on VZ Stock overall.

The market cap of VZ is $166.4B.

Based on the provided financial data and recent analyst reports, here's a concise analysis of VZ's valuation:

Valuation Analysis VZ is currently trading at a P/E of 19.37 (Q3 2024), which has increased from 15.65 in Q1 2024, indicating some valuation expansion. The EV/EBITDA ratio is 6.92, suggesting relatively attractive valuation compared to industry standards.

Financial Health

• Revenue growth remains flat with Q3 2024 revenue at $33.33B
• Net income declined to $3.31B in Q3 from $4.60B in Q1 2024
• Gross margin improved slightly to 48.03% in Q3 from 47.49% in Q1
• High debt level with debt-to-equity ratio at 154.24%

Recent Analyst Views Recent analyst actions show mixed sentiment:

• UBS maintained Hold rating with $45 PT (Dec 2024)
• Keybanc downgraded to Hold from Buy (Oct 2024)
• Tigress Financial maintained Strong Buy with $55 PT (Oct 2024)

Conclusion VZ appears fairly valued at current levels considering:

1. Stable but unexciting revenue growth
2. Declining profitability metrics
3. High debt burden offsetting strong cash flow generation
4. Dividend yield providing support

The stock shows limited upside potential in the near term unless growth metrics improve significantly or debt levels decrease substantially.

Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its reportable segments are Verizon Consumer Group and Verizon Business Group. Its Consumer segment provides wireless and wireline communications services. Its wireless services are provided across wireless networks in the United States (U.S.) under the Verizon brands. Its wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over its fiber-optic network under the Fios brand and over a traditional copper-based network. Its Business segment provides wireless and wireline communications services and products, including data, video and conferencing services, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things services and products.

Based on the available data and analyst projections, here's the price prediction for Verizon (VZ) stock by 2030:

VZ stock is projected to reach $55-60 by 2030, driven by its aggressive Fixed Wireless strategy and successful 5G network monetization. The company's improving wireless services revenue growth of 2.7% and increasing consumer wireless average revenue per account (ARPA) of $139 (up 4.2%) demonstrate strong fundamentals for long-term growth. Recent analyst upgrades from Wolfe Research and Keybanc to "Buy" with price targets of $45-46 suggest positive momentum in the medium term.

VZ has a total of 105400 employees.