Don't Buy Verizon Communications (VZ) Before Checking Its Fundamentals!

Verizon Communications moved 0.3% this evening session, trading between a high of $36.18 and a low of $35.41 per share. Yesterday the stock finished at $35.71 per share, compared to an average analyst target price of $37.26.

Verizon Communications Inc., through its subsidiaries, provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. The large-cap telecommunications equipment company is based in the United States, and over the last twelve months it has returned a dividend yield of 7.3%. Verizon Communications has trailing twelve months earnings per share (EPS) of 4.97, which at today's prices amounts to a price to earnings (P/E) ratio of 7.2.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 11.52. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Overview of the Company's Gross Margins:

Date Reported Revenue ($ k) Cost of Revenue ($ k) Gross Margins (%) YoY Growth (%)
2023 135,000,000 105,077,000 22 0.0
2022 136,835,000 106,368,000 22 -8.33
2021 133,613,000 101,165,000 24 9.09
2020 128,292,000 99,494,000 22 -4.35
2019 131,868,000 101,490,000 23 35.29
2018 130,863,000 108,585,000 17

Verizon Communications's 21.7% average gross margins are thinner than the 53.85% average of the Communication Equipment industry, implying that the firm might be lacking in competitivity.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.