Verizon Communications Inc. [NYSE:VZ]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Verizon Communications Inc. [VZ], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of December. On average, stock market experts give VZ an Outperform rating. Its stock price has been found in the range of 46.08 to 61.58. This is compared to its latest closing price of $58.71.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Verizon Communications Inc. [VZ] is sitting at 2.44. This is compared to 1 month ago, when its average rating was 2.44.
For the quarter ending in Dec-18 Verizon Communications Inc. [VZ] generated $34.28 billion in sales. That’s 0.52% lower than the average estimate of $34.46 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Tue 23 Apr (In 7 Days).
Fundamental Analysis of Verizon Communications Inc. [VZ]
Now let’s turn to look at profitability: with a current Operating Margin for Verizon Communications Inc. [VZ] sitting at +22.93 and its Gross Margin at +44.52, this company’s Net Margin is now 11.90%. These measurements indicate that Verizon Communications Inc. [VZ] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 18.21, and its Return on Invested Capital has reached 12.00%. Its Return on Equity is 32.27, and its Return on Assets is 5.95. These metrics all suggest that Verizon Communications Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Verizon Communications Inc. [VZ] has generated a Total Debt to Total Equity ratio of 212.74. Similarly, its Total Debt to Total Capital is 68.03, while its Total Debt to Total Assets stands at 42.69. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 199.22, and its Long-Term Debt to Total Capital is 63.70. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 7.45 and its Total Debt to EBITDA Value is 2.38. The Enterprise Value to Sales for this firm is now 2.70, and its Total Debt to Enterprise Value stands at 0.33. Verizon Communications Inc. [VZ] has a Price to Book Ratio of 4.37, a Price to Cash Flow Ratio of 6.76 and P/E Ratio of 15.59. These metrics all suggest that Verizon Communications Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Verizon Communications Inc. [VZ] earns $905,626 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.30 and its Total Asset Turnover is 0.50. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.82 and its Current Ratio is 0.86. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Verizon Communications Inc. [VZ] has 4.14B shares outstanding, amounting to a total market cap of $242.88B. Its stock price has been found in the range of 46.08 to 61.58. At its current price, it has moved by -4.60% from its 52-week high, and it has moved 27.48% from its 52-week low.
This stock’s Beta value is currently 0.49, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.00. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Verizon Communications Inc. [VZ] a Reliable Buy?
Shares of Verizon Communications Inc. [VZ], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.