Our prognosis on Verizon Communications (NYSE:VZ) to bounce back in December

VZ Stock  USD 40.64  0.37  0.92%   
While some baby boomers are getting worried about communication services space, it is reasonable to break down Verizon Communications. We will check why this entity may not get much respect from investors given the current market uncertainty. Is the entity valuation justified? Here I will cover 2022 perspective on the current valuation of the stock to give you a better outlook on taking a possible position in this stock.
Published over two months ago
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The company reports 178.64 B of total liabilities with total debt to equity ratio (D/E) of 2.01, which may imply that Verizon Communications 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 is UNDERVALUED at 49.34 per share with modest projections ahead.
We determine the current worth of Verizon Communications using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Verizon Communications based exclusively on its fundamental and basic technical indicators. By analyzing Verizon Communications's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Verizon Communications's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Verizon Communications. We calculate exposure to Verizon Communications's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Verizon Communications's related companies.

Verizon Communications Investment Alerts

Verizon investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Verizon Communications performance across your portfolios.Please check all investment alerts for Verizon

Verizon Communications Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Verizon value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Verizon Communications competition to find correlations between indicators driving the intrinsic value of Verizon.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Verizon Communications, but it might be worth checking our own buy vs. sell analysis

Acquisition by Webster Catherine T of tradable shares of Verizon Communications subject to Rule 16b-3

Legal trades by Verizon Communications insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Verizon insider trading alert for grant of common stock by Webster Catherine T, Senior VP and Treasurer, on 26th of December 2022. This event was filed by Verizon Communications In with SEC on 2008-05-06. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Verizon Communications Indicators

The current Verizon Communications price slide may raise some interest from investors as it is trading at a share price of 38.30 on very low momentum in trading volume. The company management teams were unable to exploit market volatilities in October. However, diversifying your overall positions with Verizon Communications can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.54. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margins Breakdown

Verizon profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Verizon Communications itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Verizon Communications profit margins.
13.15
Profit Margin
20.98
Operating Margin
31.44
EBITDA Margin
Operating Margin20.98
EBITDA Margin31.44
Gross Margin64.86
Profit Margin13.15


Verizon Communications Average Assets is increasing over the last 8 years. Moreover, Verizon Communications Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment.

Verizon Communications has a good chance to finish above $39 in 2 months

Current total risk alpha is at -0.23. Verizon Communications exhibits very low volatility with skewness of 0.17 and kurtosis of 0.47. However, we advise investors to further study Verizon Communications technical indicators to ensure that all market info is available and is reliable. 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 bullish 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.

Our Bottom Line On Verizon Communications

While some other entities in the telecom services industry are either recovering or due for a correction, Verizon may not be as strong as the others in terms of longer-term growth potentials. While some short-term oriented investors may not share our view, we believe it may be a good time to buy new shares of Verizon.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Verizon Communications. Please refer to our Terms of Use for any information regarding our disclosure principles.

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