Verizon is an American telecommunications company. In times of economic downturn, this industry is considered protective.
According to investing.com, this stock has a beta coefficient equal to 0.405. In other words, the stock's price movements have been slower than those of the broader market.
The company offers a high dividend yield. Over the 12 months, $2.71 per share will be paid out. This works out to 6.11%.
Verizon's value is expected to fall on 12/03/2024 . The market is under pressure due to the high level of interest rates. There are also objective issues. They are undermining investor confidence in this asset.
Price Today — $43.85 USD.
Price at Q1 of 2024 — $47.66.
Price for next year 2025 — $77.53.
Long-term price 2025-2030 — $77.53-$92.74.
Verizon's cap is likely to rise in the coming months. Analyst ratings on the share are Buy and Hold. There are no sell recommendations for the asset.
Verizon stock is trading within a rising trend channel in the medium long term. On most timeframes, the technical analysis gives a Strong Buy rating. Example:
The asset is still far from overbought according to the RSI indicator;
Moving averages are below the price chart line;
There were only 3 «red» days in the last 10 ones.
On November 29, VZ is trading near the strong resistance. If the price moves down, the support line will be $43.1. If the price goes lower, it will be a signal to open short positions.
The bulls will encounter resistance as they attempt to break above the $45.03 level in a bullish trend. Consolidating above this level will signal a stronger bullish trend.
In early 2024, Verizon said it intends to strengthen its position. Forbes analysts note:
C-band acquisitions for post-paid subscriber growth;
Growth in fixed wireless broadband customers;
Launch of the myPlan program, which allows you to add additional services to your plan.
Both bullish and bearish predictions are offered for the next 5 years. Verizon's strengths are highlighted by the authors of the bullish scenarios. First and foremost is its dominance in the U.S. wireless market. Other positive factors:
Global presence;
High innovation;
Strong branding;
Effective Marketing Strategy;
Stable demand for telecommunications services even during economic crises.
The bears call the company a risky investment. They believe the business is not diversified enough. Most of its profits are tied to the American market. And if there is a crisis in the telecom industry, Verizon will suffer losses.
Over the next 5 years, the following events could cause prices to fall:
Adopting new laws governing confidential information;
Losing Market Share;
Data breaches lead to loss of customer confidence.
Verizon is off to a good start in 2024. The stock is up nearly 18% YTD. The company's financial results in recent quarters make it the most profitable company in the telecom sector. Return on Equity has been about 10.43% versus 8.85% for major competitors.
Some experts doubt that the TV giant's capitalization will continue to grow. They point to its $174.2 billion in debt and the high cost of servicing it.
Bulls are confident that Verizon will be the leading provider of 5G services in the US. The proliferation of this technology will be key to the company's financial health.
Targeted pricing from leading agencies:
$44 — UBS;
$47 — Scotiabank;
$55 — Tigress Financial.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Total change, % |
December |
40.82 |
52.67 |
15.2 |
Dividend yield is one of the most important factors for Verizon stock. This is what makes it attractive to long-term passive investors. The company has increased its payout over the past 19 years.
The Motley Fool points out the risk of a dividend cut. The main reason is the high cost of debt service and the need to reduce it. However, other experts believe that this will not significantly affect cash flow. Current Payout Ratio is 58.49%.
End-of-2025 target levels:
$34.78 — Coincodex;
$37.27 — Walletinvestor;
$46.95 — Stockraven;
$51.66 — CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Change, % |
January |
40.11 |
51.42 |
5.4 |
February |
43.41 |
50.95 |
14.1 |
March |
43.89 |
51.53 |
15.4 |
April |
44.08 |
51.74 |
15.8 |
May |
46.27 |
54.31 |
21.6 |
June |
47.11 |
55.31 |
23.8 |
July |
49.55 |
58.17 |
30.2 |
August |
50.22 |
58.96 |
32.0 |
September |
54.59 |
66.45 |
48.8 |
October |
56.93 |
66.83 |
49.6 |
November |
61.88 |
72.84 |
63.1 |
December |
67.44 |
79.55 |
78.1 |
In the third quarter of 2024, interest expense was approximately $1.67 billion. Verizon’s ongoing strategy is to reduce debt. But much of 2026's prices will depend on how long borrowing costs remain high. This will drive the interest cost.
Some experts believe that Verizon will become unattractive to invest in if saddled with debt. Their forecast is for a decline in the share price by almost 1.7 times. Bullish scenarios are also presented. The most optimistic of them promises to increase the share price more than 140% by the end of 2026:
$31.58 — Walletinvestor;
$26.45 — Coincodex;
$47.47 — Stockraven;
$55.77 — CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Change, % |
January |
68.95 |
80.95 |
81.2 |
February |
71.91 |
84.41 |
89.0 |
March |
73.73 |
86.55 |
93.8 |
April |
77.31 |
90.75 |
103 |
May |
80.58 |
94.60 |
112 |
June |
82.70 |
97.08 |
117 |
July |
81.79 |
96.01 |
115 |
August |
84.82 |
99.58 |
123 |
September |
92.20 |
110.29 |
147 |
October |
91.36 |
107.24 |
140 |
November |
87.76 |
103.02 |
131 |
December |
93.92 |
110.26 |
147 |
According to Stock Analysis, Verizon's revenues are expected to grow to $152.2 billion by 2027. EPS will be in the range of $4.83-$5.23. That's much higher than Verizon is expected to earn in 2022 and 2023. In those years, the company posted a loss.
Experts cite 5G services as a key growth driver. At the same time, some experts believe that this will not be enough. They predict a significant drop in prices. The main argument of the bears remains the level of debt.
Projections to late 2027 from various services:
$25.89 — Walletinvestor;
$26.41 — Coincodex;
$52.88 — Stockraven;
$60.31 — CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Change, % |
January |
79.84 |
102.09 |
110 |
February |
73.04 |
86.78 |
91.9 |
March |
79.04 |
92.78 |
108 |
April |
79.92 |
93.82 |
110 |
May |
80.25 |
94.21 |
111 |
June |
84.24 |
98.90 |
121 |
July |
78.11 |
91.69 |
105 |
August |
82.15 |
96.43 |
116 |
September |
77.72 |
91.24 |
104 |
October |
84.48 |
102.83 |
130 |
November |
85.60 |
100.48 |
125 |
December |
93.04 |
109.51 |
145 |
Financial results in 2028 are not expected to be much different from 2027, according to the stock analysis platform. Despite this, some experts believe that the company's subscriber base will continue to grow.
Share price forecast for the end of 2028:
$20.18 — Walletinvestor;
$34.98 — Coincodex;
$57.51 — Stockraven;
$67.98 — CoinPriceForecast.
Walletinvestor promises a catastrophic fall in capitalization. But this platform is known for its bearish views on many companies. BeatMarket thinks such pessimism is exaggerated.
The most optimistic Longforecast predicts an almost 2.6-fold increase in prices.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
Change, % |
January |
101.40 |
119.61 |
168 |
February |
94.73 |
111.21 |
149 |
March |
98.78 |
115.96 |
160 |
April |
88.79 |
107.37 |
133 |
May |
93.09 |
109.29 |
145 |
June |
97.03 |
113.91 |
155 |
July |
99.58 |
116.90 |
162 |
August |
98.49 |
115.61 |
159 |
September |
102.14 |
119.90 |
168 |
October |
111.02 |
132.80 |
197 |
November |
110.00 |
129.12 |
189 |
December |
105.66 |
124.04 |
178 |
For the long term, there are 2 types of forecasts offered by analytical services. Bulls consider the company promising. They expect the capitalization to increase almost 5 times by 2050. Taking into account the constantly growing dividends, the yield could reach 23% per year. This result should outperform the S&P 500.
The bears predict a significant decline in prices over the next 25 years. They give the asset a Strong Sell rating. Such a long-term forecast based on fundamentals is impossible. It is made by extrapolating data from previous years. The final number depends on the period chosen and the mathematical model used.
Forecasts for the next 10 years are mostly bullish. No one long-term forecasting service offers a negative scenario:
$84.73 — Stockraven;
$98.33 — CoinPriceForecast;
$135 — Stockscan.
BeatMarket analysts are optimistic. There is no reason to expect the company to lose significant market share. Also, the company has enough resources to handle the current debt without cutting the dividend.
Most analysts believe that the company's market capitalization will increase by 2030 from the current level. The main argument of the bulls is that the company will maintain its current leadership in the industry. But we can see a negative scenario too.
Potential share value in 2030:
$21.58 — Coincodex;
$66.37 — Stockraven;
$82.43 — CoinPriceForecast.
In 2040, different services offer diametrically opposed scenarios:
$17.01 — Coincodex;
$109.75— Stockraven;
$168.44 — Stockscan.
The BeatMarket specialists find Stockraven's view more reasonable. If market share is maintained, Verizon's capitalization will grow. To become 2 times cheaper, the company would have to go from an industry leader to an underdog.
Bullish and bearish forecasts for 2050 are also provided:
$7.16 — Coincodex;
$152.57 — Stockraven;
$224.79 — Stockscan.
The emergence of new developments that will fundamentally change the communications system is one of the bears' arguments. BeatMarket analysts disagree. We believe that Verizon has enough opportunities to remain among the industry's technological leaders.
Verizon Communications traces its roots to the Bell Telephone Company, which was founded in 1877. The company took its current name in 2000 after a merger with GTE.
The company provides wired and wireless communications to businesses and consumers. Its services are also used by federal and local governments.
The main competitors are AT&T and T-Mobile. Indirect competition from companies offering alternative means of communication is also significant. For example, Apple Inc., Meta Platforms, Inc.
Competition and high debt levels are Verizon's main risks.
1999
Against the backdrop of a long bull market, prices attempted to test the $60 level. However, they failed to gain a foothold above it. A long bearish trend then began.
2019
Verizon's stock hit an all-time high of more than $61 in December, driven largely by good earnings and strong free cash flow.
2023
Quotations have reached the local bottom. They have fallen to 2010 levels. The reason was unsatisfactory financial performance. In addition, investors feared that competitors could squeeze Verizon's position in the market.
Positive revenue and earnings forecasts lead to price increases. If analysts expect the issuer's financial position to deteriorate, the stock will sell off. Profitability indicators, dividend yield, etc. are also important.
The communications services sector is driven by IT innovation. The introduction of 5G technology is a good example. The company's long-term valuation depends on its ability to fill a new niche.
Quotes are influenced by macroeconomic factors such as the level of Fed Funds rates, GDP dynamics, etc. Legislation and regulation play an important role. Changes in requirements for communications providers can have a major impact on the entire industry.
According to investing.com, as of November 29, 2024, 12 analysts have a "buy" rating and 13 have a "hold" rating on Verizon. Wall Street is not recommending selling the stock.
From a value investing perspective, Verizon is overvalued: the current price is higher than the value calculated by the P. Lynch formula. At the same time, the P/E multiple is 19.13. According to investing.com, this is 1.5 times lower the industry average.
The 2025 target range is $34.78-$79.55.
Verizon is a low volatility issuer. Advantages - high dividends and stability in times of crisis. The stock is suitable for a conservative investor. A person interested in growth companies will not find it useful.
The Valueinvesting.io platform provides the results of calculations using the P. Lynch formula. It puts Verizon's fair value at $11.64. If the value is calculated using the discounted cash flow method, the result would be $54.11.
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