Decoding 4 Analyst Evaluations For Verizon Communications
During the last three months, 4 analysts shared their evaluations of Verizon Communications (NYSE:VZ), revealing diverse outlooks from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 2 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $46.38, a high estimate of $52.00, and a low estimate of $42.00. This current average has increased by 1.09% from the previous average price target of $45.88.
Breaking Down Analyst Ratings: A Detailed Examination
An in-depth analysis of recent analyst actions unveils how financial experts perceive Verizon Communications. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Philip Cusick | JP Morgan | Lowers | Neutral | $45.00 | $46.00 |
| Jonathan Atkin | RBC Capital | Maintains | Sector Perform | $42.00 | $42.00 |
| Maher Yaghi | Scotiabank | Raises | Sector Perform | $46.50 | $45.50 |
| Ivan Feinseth | Tigress Financial | Raises | Buy | $52.00 | $50.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Verizon Communications. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Verizon Communications compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Verizon Communications's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Verizon Communications's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Verizon Communications analyst ratings.
About Verizon Communications
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.
Verizon Communications: Delving into Financials
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3 months period, Verizon Communications showcased positive performance, achieving a revenue growth rate of 0.21% as of 31 March, 2024. This reflects 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 13.95%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.93%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Verizon Communications's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.21%, the company may face hurdles in achieving optimal financial performance.
Debt Management: With a high debt-to-equity ratio of 1.86, Verizon Communications faces challenges in effectively managing its debt levels, indicating potential financial strain.
The Significance of Analyst Ratings Explained
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.