Verizon Stock Buy Hold or Sell Recommendation

VZ
 Stock
  

USD 50.96  1.13  2.17%   

Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Verizon Communications is 'Strong Hold'. Macroaxis provides Verizon Communications buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding VZ positions. The advice algorithm takes into account all of Verizon Communications' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Verizon Communications' buy-and-hold perspective. Also, please take a look at Verizon Communications Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Verizon and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Verizon Communications.

Execute Verizon Communications Buy or Sell Advice

The Verizon recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Verizon Communications. Macroaxis does not own or have any residual interests in Verizon Communications or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Verizon Communications' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Verizon CommunicationsBuy Verizon Communications
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Close to AverageDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Verizon Communications has a Risk Adjusted Performance of 0.0273, Jensen Alpha of 0.0898, Total Risk Alpha of 0.1758, Sortino Ratio of 0.0976 and Treynor Ratio of 0.0379
Our trade recommendation tool can be used to complement Verizon Communications advice provided by experts. It analyzes the firm's potential to grow against your specific risk preferences and investment horizon. To make sure Verizon Communications is not overpriced, please validate all Verizon Communications fundamentals, including its revenue, total debt, earnings per share, as well as the relationship between the net income and book value per share . Given that Verizon Communications has a price to earning of 9.52 X, we advise you to double-check Verizon Communications market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Verizon Communications Trading Alerts and Improvement Suggestions

The company reports 182.32 B of total liabilities with total debt to equity ratio (D/E) of 2.14, which may imply that the company relies heavily on debt financing. Verizon Communications has a current ratio of 0.74, implying that it has not enough working capital to pay out debt commitments in time. Debt can assist Verizon Communications until it has trouble settling it off, either with new capital or with free cash flow. So, Verizon Communications' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Verizon Communications sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Verizon to invest in growth at high rates of return. When we think about Verizon Communications' use of debt, we should always consider it together with cash and equity.
Verizon Communications has a strong financial position based on the latest SEC filings
About 67.0% of Verizon Communications outstanding shares are owned by institutional investors
Latest headline from www.marketwatch.com: T-Mobile US Inc. stock underperforms Tuesday when compared to competitors despite daily gains - MarketWatch

Verizon Communications current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Verizon analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Verizon analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price59.28
Target Median Price58.00
Target High Price71.00
Recommendation Mean2.80
Number Of Analyst Opinions25
Target Low Price44.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Verizon Communications Returns Distribution Density

The distribution of Verizon Communications' historical returns is an attempt to chart the future uncertainty of Verizon Communications' future price movements. The chart of the probability distribution of Verizon Communications stock daily returns describes the distribution of returns around its average expected value. We use Verizon Communications price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Verizon Communications returns is essential to provide solid investment advice for Verizon Communications stock.
Mean Return0.028Value At Risk-2.42
Potential Upside2.30Standard Deviation1.48
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Verizon Communications historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Verizon Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Verizon Communications is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Verizon Communications backward and forwards among themselves. Verizon Communications' institutional investor refers to the entity that pools money to purchase Verizon Communications' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares330.2 M16.8 B
Blackrock IncCommon Shares304.7 M15.5 B
State Street CorpCommon Shares167.9 M8.6 B
Geode Capital Management LlcCommon Shares75.2 M3.8 B
Bank Of America CorpCommon Shares65 M3.3 B
Charles Schwab Investment Management IncCommon Shares59.8 MB
Capital World InvestorsCommon Shares49.9 M2.5 B
Note, although Verizon Communications' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Verizon Communications Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(6.73 B)(15.38 B)(18.16 B)1.32 B8.28 B8.93 B
Net Cash Flow from Investing(19.37 B)(17.93 B)(17.58 B)(23.51 B)(67.15 B)(68.92 B)
Net Cash Flow from Operations25.3 B34.34 B35.75 B41.77 B39.54 B34.93 B

Verizon Communications Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Verizon Communications or Communication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Verizon Communications stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Verizon stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.09
β
Beta against DOW0.47
σ
Overall volatility
1.52
Ir
Information ratio 0.11

Verizon Communications Volatility Alert

Verizon Communications has relatively low volatility with skewness of -1.12 and kurtosis of 3.35. However, we advise all investors to independently investigate Verizon Communications to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Verizon Communications' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Verizon Communications' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Verizon Communications Implied Volatility

Verizon Communications' implied volatility exposes the market's sentiment of Verizon Communications stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Verizon Communications' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Verizon Communications stock will not fluctuate a lot when Verizon Communications' options are near their expiration.

Verizon Communications Fundamentals Vs Peers

Comparing Verizon Communications' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Verizon Communications' direct or indirect competition across all of the common fundamentals between Verizon Communications and the related equities. This way, we can detect undervalued stocks with similar characteristics as Verizon Communications or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Verizon Communications' fundamental indicators could also be used in its relative valuation, which is a method of valuing Verizon Communications by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Verizon Communications to competition
FundamentalsVerizon CommunicationsPeer Average
Return On Equity27.81 %(0.31) %
Return On Asset5.06 %(0.14) %
Profit Margin15.93 %(1.27) %
Operating Margin33.59 %(5.51) %
Current Valuation376.38 B16.62 B
Shares Outstanding4.2 B571.82 M
Shares Owned by Insiders0.06 %10.09 %
Shares Owned by Institutions67.20 %39.21 %
Number of Shares Shorted45.11 M4.71 M
Price to Earning9.52 X28.72 X
Price to Book2.72 X9.51 X
Price to Sales1.58 X11.42 X
Revenue134.3 B9.43 B
Gross Profit77.31 B27.38 B
EBITDA45.11 B3.9 B
Net Income21.4 B570.98 M
Cash and Equivalents1.79 B2.7 B
Cash per Share0.43 X5.01 X
Total Debt182.32 B5.32 B
Debt to Equity2.14 %48.70 %
Current Ratio0.76 X2.16 X
Book Value Per Share18.61 X1.93 K
Cash Flow from Operations36.67 B971.22 M
Short Ratio1.63 X4.00 X
Earnings Per Share5.32 X3.12 X
Price to Earnings To Growth2.47 X4.89 X
Number of Employees118.5 K18.84 K
Beta0.37-0.15
Market Capitalization212.62 B19.03 B
Total Asset244.64 B29.47 B
Retained Earnings14.67 B9.33 B
Working Capital(12.77 B)1.48 B
Current Asset22.28 B9.34 B
   Verizon Communications exotic insider transaction detected [view details]

About Verizon Communications Buy or Sell Advice

When is the right time to buy or sell Verizon Communications? Buying financial instruments such as Verizon Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Verizon Communications investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables25.43 B23.92 B23.85 B20.11 B
Inventories1.42 B1.8 B3.06 B3.3 B

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In addition to having Verizon Communications in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Diversified Assets
Diversified Assets Theme
Pablicly traded close-end funds and other entities backed by different types of diversified investments. The Diversified Assets theme has 21 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Diversified Assets Theme or any other thematic opportunities.
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Also, please take a look at Verizon Communications Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Verizon Communications information on this page should be used as a complementary analysis to other Verizon Communications' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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When running Verizon Communications price analysis, check to measure Verizon Communications' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Verizon Communications is operating at the current time. Most of Verizon Communications' value examination focuses on studying past and present price action to predict the probability of Verizon Communications' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Verizon Communications' price. Additionally, you may evaluate how the addition of Verizon Communications to your portfolios can decrease your overall portfolio volatility.
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Is Verizon Communications' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Verizon Communications. If investors know Verizon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Verizon Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.14
Market Capitalization
214 B
Quarterly Revenue Growth YOY
0.021
Return On Assets
0.0506
Return On Equity
0.28
The market value of Verizon Communications is measured differently than its book value, which is the value of Verizon that is recorded on the company's balance sheet. Investors also form their own opinion of Verizon Communications' value that differs from its market value or its book value, called intrinsic value, which is Verizon Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Verizon Communications' market value can be influenced by many factors that don't directly affect Verizon Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Verizon Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine Verizon Communications value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verizon Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.