Verizon Looks Ripe for Upgrades Before Earnings

Verizon will report fourth-quarter earnings on Jan. 25

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Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications conglomerate. VZ engages in the provision of communications, information, and entertainment products and services to consumers, businesses, and governmental agencies. This afternoon, VZ is trading up 0.2% at $53.49.

Verizon is scheduled to report its fourth-quarter earnings on Tuesday, Jan. 25. Wall Street analysts anticipate that Verizon's earnings will come in at $1.29 per share in the upcoming earnings report.

Verizon stock has decreased a meek 7% year-over-year and VZ is currently down 10% since peaking at a 52-week high of $59.85 in May. Shares of VZ have increased just 2% year-to-date and Verizon stock is currently up just 8% from its 52-week low of $49.69 at the beginning of December.

Moreover, the telecommunications company has produced very little top and bottom line growth in recent years, despite producing a relatively consistent growth rate. VZ also holds a balance sheet with $10.15 billion in cash and $178.98 billion in total debt.

However, Verizon stock does have a great valuation with a price-earnings ratio of 10.04 and a price-sales ratio of 1.55. VZ also offers a forward dividend of 2.56 and a dividend yield of 4.79%, making Verizon stock a very attractive and low-risk investment amid a very uncertain market.

Analysts have been uneasy toward the telecom name. That is, heading into today, 10 of 17 covering brokerages sport a tepid "hold" recommendation. In simpler terms, an unwinding of this pessimism could mean more upgrades for the equity moving forward.

 




 
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