Verizon Communications Inc. (NYSE:VZ) Stock Is More Attractive Than It Looks

Taking into account all relevant factors, Verizon Communications Inc. (NYSE:VZ) scores 40% Buy on the technical side. The share price is also flashing a Sell from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for VZ averaged 50% Buy with an average daily trading volume over the past 20 days at 13058920 shares. Those using medium-term investment strategies, the shares have overall a 0.5% Buy signal while the 50-day average daily volume remained almost 11384646 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 11250156 shares, is signaling50% Buy for long term investors.

The stock is lingering around the initial support level of $58.84. After this, the following support is at the zone of $58.58. Up until the time the VZ stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 39.48 on the daily chart, and this may be a cause for comfort. In case the price goes below $58.58 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $59.39 level may cause a pull-back move approaching $59.68 mark.

Verizon Communications Inc. (VZ) is most likely going to rise 3.97 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $70 as 12-month high price target. This represents a whopping 18.12 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $64, which means a return possibility of 8 percent in comparison with the closing price of the stock of $59.26 in recent trading session. The lowest price set for the stock is $50 which is just above -15.63 percent from VZ share’s price at the end of session.

Let’s take a glimpse at some insider activity at Verizon Communications Inc. (NYSE:VZ) and observe the pattern. The earliest insider trade happened on 11/26/2019. SILLIMAN CRAIG L. parted with a total of 1.35 thousand shares of the firm at average share price of $59.55. The total amount for the sale was set at $80.15 thousand. On completing this exchange, the EVP&ChiefAdminLegal&PubPolOff account balance was 22.72 thousand shares. The stock lost -0.52 percent from that insider sale. On 10/28/2019, SILLIMAN CRAIG L., EVP&ChiefAdminLegal&PubPolOff, did a sale of 1.35 thousand shares at a price of $60.42 per share. This got rid of 81.51 thousand shares from the insider’s fortune and the stock experienced a -1.95 percent retreat in price since the news became public. This exchange saw 24.03 thousand shares get out from the EVP&ChiefAdminLegal&PubPolOff account. On 09/26/2019, EVP&ChiefAdminLegal&PubPolOff SILLIMAN CRAIG L. recorded a sale transaction valued at $81.13 thousand. The sale at $60.14 a share has eliminated 1.35 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -1.5 percent decrease since the transaction reporting date. The company insider is left with 25.38 thousand shares remaining in the account. Erwin Tami A., who works as EVP and Group CEO-VZ Business at the company, performed a sale of 17 thousand shares in a transaction worth $981.75 thousand. The disposal recorded on 08/29/2019 was priced at $57.75 per share. The stock price soared 2.58 percent since the transaction. Erwin Tami A. currently holds a stake of 39.6 thousand in VZ stock which is worth $2.35 million after the insider selling.

In the recent trading session, Verizon Communications Inc. (NYSE:VZ) shares gained 0.27% or 0.16 points to reach at $59.26 with a thin trading volume of 889.565 thousand shares. It opened the trading session at $59.25, the shares rose to $59.42 and dropped to $58.87, the range by which the price of stock traded the whole session. The company now has a market cap of $245 billion and currently has 4.14 billion outstanding shares. Verizon Communications Inc. (VZ) stock has plunged -2.81 percent of market value in 21 trading days.

Stock analysts at HSBC Securities cut their rating on shares of Verizon Communications Inc. (NYSE:VZ) from Buy to a new rating of Hold in their opinion released on November 14. Nomura analysts have downgraded their rating of VZ shares from Buy to Neutral in a separate flash note to investors on November 04.

VZ stock’s trailing 3-year beta is 0.48, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.89 share in the trailing 52 weeks. The stock’s value fallen -3.75 percent year to date (YTD) compared to a rise of 1.72 percent in 52 week’s period. The firm’s shares are still trading -4.76 percent below its 1-year high of $62.22 and 13.35 percent up from 52-week low of $52.28. The average consensus ranking on the company is 2.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Verizon Communications Inc. (VZ) shares are trading at a P/E ratio of 15.16 times earnings posted in the trailing 12 months. The industry VZ deals with has an average P/E of 16.22. Its P/B ratio is standing at 4.08X compared to the 2.05 industry average. It is additionally sporting a 1.9 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.35. Verizon Communications Inc. has a 58.6% gross profit margin, with its operating margin around 18.5%. Alongside this, the company’s net profit margin currently stands at 12.3%.

Past records have indicated that shares in Verizon Communications Inc. declined on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of VZ’s Q4 earnings on January 30. Analysts are predicting revenue to climb 0.9 percent to $34.6B in the financial fourth quarter, while EPS will soar by about 1.79 percent to $1.14 per share. In the last quarter, it’s earnings of $1.25 per share came better than the $1.16383, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $32.89B, topping the $32.74B analysts had expected. Earnings are seen to rise by 15.2 percent this year, 2.28 percent in the coming year and the trend continues by 2.35 percent every year in the next 5 years.