Markets Wired

Stock To Watch : Verizon Communications Inc. (NYSE:VZ)

January 06
14:45 2015

[PRNewswire] Verizon Communications Inc (NYSE:VZ) (TREND ANALYSIS) announced today that wireless customer growth remained strong throughout fourth-quarter 2014.

Verizon reported sustained, strong customer demand for 4G smartphones and tablets, as the company drove retail postpaid gross additions that were higher both sequentially and year over year. Customer phone upgrades approached 10 percent, higher than the 9.5 percent previously expected, as upgrade volumes trended higher as December progressed.

Verizon expects first-quarter 2015 wireless margins to return to historical levels. As previously announced, the company will report that the fourth-quarter impacts of strong customer volumes, together with its promotional offers, put short-term pressure on its wireless segment EBITDA and EBITDA service margin (non-GAAP, based on earnings before interest, taxes, depreciation and amortization).

Stock Performance: Click here for a free comprehensive Trend Analysis Report

Verizon Communications Inc (NYSE:VZ) reported third quarter earnings for fiscal year 2014 on October 21st. The company reported actual earnings per share of $0.89 against the consensus Street estimate of $0.9. This represents a year-on-year increase of earning per share of $0.12 from corresponding quarter of last year. Verizon Communications Inc posted revenue of $31.59 billion versus estimate of $31.59 billion.

The company is currently valued at $193.25 billion and closed the last trading session at $46.57. The stock has 50-day moving average of $48.86 and a 200-day moving average of $48.94.

Verizon Communications Inc (NYSE:VZ) is currently trading 13.21% below its 52-week-high, 3.28% above its 52-week-low and in the range of $45.09-$50.84 over the past month. The 1-year range for the stock is $45.09-$53.66. Verizon Communications Inc has a price to book ratio of 11.66 versus S&P 500 average of 2.74. The company’s share price has outperformed the S&P 500 year to date by over 1.44%.

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There are currently forty analysts that we track that cover the stock. Of those forty, twenty-four have a buy rating, sixteen have a hold rating, and . On a consensus basis this yields to a score of 4.2 and a Buy. The consensus target price stands at $53.19 which represents an upside of 14.22% from the last closing price of $46.57.

The most recent analyst activity consisted of Sanford C. Bernstein & Co reiterating their outperform stance with a target price of $54, which represents an upside of 15.95% from the last closing price. On the date of report, the stock closed at $46.57.

Another research firm weighing in recently was Cowen and Company maintaining their market perform stance with a target price of $51, which corresponds to an upside of 9.51% from the last closing price. On the date of report, the stock closed at $46.78.

A third research firm weighing in recently was FBR Capital Markets reiterating their outperform stance with a target price of $57, which translates into an upside of 22.4% from the last closing price. On the day of report, the stock closed at $47.02.

Company Profile

Verizon Communications Inc. (NYSE:VZ) is a holding company. Through its subsidiaries, Verizon is engaged in delivering broadband and other wireless and wireline communications services to consumer, business, Government and wholesale customers. The Company operates through two segments: Wireless and Wireline. Verizon Wireless’s communications products and services include wireless voice and data services and equipment sales. Wireline’s communications products and services include voice, Internet access, broadband video and data, Internet protocol network services, network access, long distance and other services. As of June 30, 2014, the Company had 104.6 million retail connections, including 98.6 million retail postpaid connections. Verizon also provides converged communications, information and entertainment services over America’s fiber-optic network, and delivers integrated business solutions to customers in approximately 150 countries.

About Author

Alex Larose

Alex Larose

Alex Larose covers Large and Mid Cap stocks. He joined Markets Wired in 2013 and assumed lead coverage of the several sectors in early 2014.

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