Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Verizon Communications Inc. (VZ) stock, we need to analyze both technical and fundamental factors.

Technical Analysis:

Verizon's stock price is currently trading at $43.98 with a slight pre-market decline of -0.02%. The technical indicators suggest a neutral to slightly bullish outlook:

• RSI (14): 53.18, indicating the stock is not overbought or oversold.
• MACD: The MACD line is above the signal line, suggesting bullish momentum.
• Bollinger Bands: The stock is trading near the lower band, indicating potential oversold conditions.

Fundamental Analysis:

Verizon's fundamentals remain strong, with a focus on returning value to shareholders:

• Dividend Yield: 6.22%, one of the highest in the telecom sector, supported by strong free cash flow.
• Shareholder Yield: Rated 90% by Validea's Shareholder Yield Investor model, indicating strong cash return to shareholders through dividends and buybacks.
• Market Position: As a domestic-focused company, Verizon is less exposed to international trade risks, making it a safer bet amid tariff concerns.

Market Sentiment and Analyst Opinions:

• Analyst Ratings: Mixed but leaning positive, with price targets ranging from $48 to $55.
• Market Sentiment: The Fear & Greed Index indicates "extreme fear," suggesting potential buying opportunities.

Conclusion:

Given the strong dividend yield, positive analyst sentiment, and defensive characteristics, it is a good time to buy VZ stock. The company's focus on domestic sales and strong cash flow make it resilient to market volatility.

Price Prediction for VZ Stock in 2025

Based on current trends and analyst expectations, Verizon Communications Inc. (VZ) is predicted to reach a stock price of $50 by the end of 2025.

• Reason:
  • Strong Cash Flow and Dividend Yield: VZ has demonstrated strong cash flow generation, with $37 billion in operating cash flow and $19.8 billion in free cash flow for fiscal 2024. The stock offers an attractive dividend yield of 5.88%, making it a favorite among income investors.
  • Analyst Price Targets: Analysts have set a range of price targets, with the highest at $55 and the lowest at $48. The average consensus target is $48, suggesting moderate upside potential.
  • Undervaluation: VZ currently trades at a forward P/E ratio of 8x, significantly below the broader market's average, indicating undervaluation relative to its earnings potential.
  • Growth Initiatives: The company's investments in 5G and fiber network expansion, along with its "AI Connect" initiative, position it well for long-term growth in the telecommunications sector.

This prediction aligns with the stock's fundamentals and analyst sentiment, making VZ a promising investment for both income and moderate capital appreciation.

The S1 support level for VZ Stock is $43.45 ,The R1 resistant level for VZ Stock is $45.47.

As of the end of day on 2025-04-02, the price of VZ Stock was $44.76.

The target price for VZ Stock according to analyst rating is 46.47, with the highest price target at 55.00 and the lowest at 40.00. Analysts have a Moderate Buy rating on VZ Stock overall.

The market cap of VZ is $188.3B.

Analysis and Insights

Verizon Communications Inc. (VZ) is currently trading at a price of $43.98 as of March 24, 2025. To assess whether it is overvalued, we analyze its valuation metrics, financial health, and market sentiment.

Valuation Metrics:

Verizon's valuation metrics indicate it may be undervalued compared to industry peers. The price-to-earnings (P/E) ratio is 10.2, significantly lower than the industry average, suggesting the stock may be undervalued. The EV/EBITDA ratio is 6.31, which is reasonable and not indicative of overvaluation. Additionally, the dividend yield of 6.22% is attractive, reflecting strong cash return to shareholders.

Financial Health and Shareholder Yield:

Verizon has a strong track record of returning cash to shareholders. It scored 90% on Validea's Shareholder Yield Investor model, indicating robust dividends, buybacks, and debt reduction. The company generated $19.8 billion in free cash flow in 2024, comfortably covering its $11.2 billion in dividends. This financial stability supports its dividend payments and investments in growth areas like 5G and fiber networks.

Analyst Sentiment:

Analysts have mixed but leaning-positive views on Verizon. Scotiabank raised its price target to $48, while Tigress Financial maintains a Strong Buy rating with a $55 target. These actions suggest confidence in Verizon's future performance.

Market Trends and Risks:

Verizon benefits from its focus on domestic sales, reducing exposure to international trade risks. However, the telecom sector faces competitive intensity and potential price wars, which could impact subscriber growth. Despite these risks, Verizon's low P/E ratio and high dividend yield make it attractive for value and income investors.

Conclusion:

Verizon does not appear overvalued. Its attractive valuation, strong financials, and positive analyst sentiment make it a compelling choice, especially for those seeking income through dividends.

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.

Price Prediction for VZ Stock by 2030

Verizon Communications Inc. (VZ) is expected to reach a stock price of $60 by 2030.

This prediction is based on the company's strong dividend yield of 6.8%, its ongoing investments in AI and network expansion, and its defensive positioning in the telecommunications sector.

Analysts expect VZ to benefit from its fiber network growth and AI-driven initiatives, supporting long-term price appreciation.

VZ has a total of 105400 employees.