Verizon Communications Inc. Stock Price Targets

Comprehensive analysis of short, mid, and long-term price targets for Verizon Communications Inc. (VZ).

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Give me a comprehensive price target analysis for Verizon Communications Inc. (VZ).

Verizon Communications Inc. (VZ) – Comprehensive Price Target Analysis as of 2025-10-10

Price level lines drawn on chart

  • Low Target (42.00): green line
    • p1: 2025-10-10 00:00:00-04:00, price 42.00
    • p2: 2025-11-09 00:00:00-04:00, price 42.00
  • Median Target (48.00): orange line
    • p1: 2025-10-10 00:00:00-04:00, price 48.00
    • p2: 2025-11-09 00:00:00-04:00, price 48.00
  • High Target (58.00): red line
    • p1: 2025-10-10 00:00:00-04:00, price 58.00
    • p2: 2025-11-09 00:00:00-04:00, price 58.00

Note: The lines are extended 30 days into the future from today (2025-10-10) to the right edge of the chart.

Technical data and analyst consensus (selected tables and references are provided below)

Executive Summary

  • Verizon is trading at a modest valuation with a high dividend yield, supported by solid cash flow generation. The stock offers defensive exposure in a high-yield telecom, but levered balance sheet and cyclical influences on growth metrics warrant a cautious stance.
  • Current price ≈ $40.83. Forward P/E ≈ 8.63, trailing P/E ≈ 9.50, P/B ≈ 1.67. Dividend yield ≈ 6.68%, well above the five-year average of 5.89%.
  • Analysts cover the stock (23 opinions in the data) with a low target of $42, a median target of $48, and a high target of $58, implying potential upside from the current level.

Fundamental Analysis Key Valuation and Financial Metrics (selected)

  • Current price: 40.83
  • Market cap: $172.15B
  • Enterprise value: $346.79B
  • Trailing P/E: 9.50
  • Forward P/E: 8.63
  • Price to Book (P/B): 1.67
  • Return on Equity (ROE): 18.45%
  • Return on Assets (ROA): 5.20%
  • Profit Margin: 13.28%
  • Gross Margin: 59.49%
  • Operating Margin: 23.28%
  • Debt/Equity: 167.44
  • Total Cash: $3.47B
  • Total Debt: $174.74B
  • Dividend Yield: 6.68%
  • Five-year average dividend yield: 5.89%
  • Beta: 0.37

Financial Health and Margins

  • Verizon’s margins are solid for a telecom: gross margin near 60% and operating margin above 23%. However, the company carries a very high debt load (Debt/Equity > 1.6x), with total debt around $174.7B versus modest cash on hand (~$3.5B). This balance-sheet composition raises sensitivity to interest-rate movements and funding costs.
  • Cash flow metrics (EBITDA and normalized income) show steady cash generation across recent quarters, supporting the high dividend yield. The company’s free cash flow remains central to dividend sustainability and potential capital return (buybacks and debt reduction) over time.

Earnings Analysis Recent Earnings Summary (selected highlights)

  • Diluted EPS (latest quarter): 1.18 (2025-06-30)
  • Prior quarters: 1.15 (2025-03-31), 1.18 (2024-12-31), 0.78 (2024-09-30), 1.09 (2024-06-30)
  • Net Income From Continuing Operation (latest): $5.003B (2025-06-30)
  • EBITDA (latest): $12.883B; Operating Income: $8.173B
  • Revenue (latest): $34.504B; Gross Profit: $20.619B; Operating Margin: 23.28%; Net Income (latest): $5.003B
  • Normalized Income (latest): $4.9348B
  • Tax rate and unusual items trend: There are monthly/quarterly fluctuations in tax rate calculations and “Unusual Items,” but normalization indicates earnings quality driven by core operations rather than one-offs.

EPS Trend

  • 0q (latest quarter): 1.1935; 7daysAgo 1.20023; 30daysAgo 1.20358; 60daysAgo 1.20417; 90daysAgo 1.20389
  • +1q: 1.0904; 7daysAgo 1.0882; 30daysAgo 1.08631; 60daysAgo 1.08881; 90daysAgo 1.09748
  • 0y (trailing twelve months): 4.68912; 7daysAgo 4.69312; 30daysAgo 4.69449; 60daysAgo 4.70239; 90daysAgo 4.67001
  • +1y (forward twelve months): 4.83735; 7daysAgo 4.84261; 30daysAgo 4.84386; 60daysAgo 4.84556; 90daysAgo 4.82441

EPS Revisions

  • 0q: UpLast7days 0, UpLast30days 0, DownLast30days 5, DownLast7Days 3
  • +1q: UpLast7days 1, UpLast30days 1, DownLast30days 2, DownLast7Days 1
  • 0y: UpLast7days 1, UpLast30days 2, DownLast30days 4, DownLast7Days 1
  • +1y: UpLast7days 0, UpLast30days 2, DownLast30days 2, DownLast7Days 1 Interpretation: Near-term revisions show more downgrades in 0q and 0y, with a few upgrades in +1q and +1y. This suggests modest caution on near-term earnings revisions, but not an overarching negative trend.

Technical Analysis (Last 60 Days)

  • 50-Day Moving Average (latest): ~43.5 (as of 2025-10-09). Price at 40.83 remains below the 50-day MA, signaling near-term weakness but potential for a bounce if oversold conditions resolve.
  • RSI (14): 27.3 (latest), indicating oversold conditions and potential for a near-term relief rally.
  • MACD (12,26,9): Negative (latest around -0.60), signaling bearish momentum in the near term, though a potential MACD histogram bounce could precede price stabilization.

Analyst Consensus & Price Targets

  • Current price: 40.83
  • Analysts covering: 23
  • Target Low: 42.00
  • Target Median: 48.00
  • Target High: 58.00
  • Target Mean: 48.59
  • Implied upside (from 40.83):
    • To Low: ~3.0%
    • To Median: ~17.5%
    • To High: ~42.2%
  • Observation: The low target sits just above the current price, while the median/high targets indicate meaningful upside if the company can sustain earnings quality and cash generation. The low hurdle suggests a potential near-term bounce, while the higher targets imply stronger upside with improving fundamentals or multiple expansion.

Price Target Analysis (Short, Mid, Long-Term)

  • Short-Term (3 months)
    • Target: 48.0 (Median)
    • Justification: Oversold near-term technicals (RSI in the high 20s, price below 50-day MA) provides potential for a relief rally if macro conditions stabilize; the firm’s high dividend yield and steady cash flow support a re-rating closer to the median target. Near-term EPS conduct could also surprise modestly to the upside if costs stabilize and regulated revenue streams hold steady.
    • Key drivers: Stabilization in telecom demand, continued cash flow strength, dividend support, share repurchases potential, and a reversion toward the 50-day MA.
    • Risks: Persistently high debt burden, higher funding costs, and macro headwinds could delay a near-term rebound.
  • Mid-Term (12 months)
    • Target: 58.0 (High)
    • Justification: If Verizon solidifies its earnings quality, maintains robust free cash flow, and supports a healthy dividend while deploying capital efficiently (e.g., debt reduction or opportunistic buybacks), a re-rating toward the high target is plausible. An improving macro backdrop and stabilization of interest rates could further support valuation expansion.
    • Key drivers: Sustained EBITDA, improving cash conversion, disciplined capital allocation, potential strategic growth in enterprise segments or network monetization, and continued dividend growth.
    • Risks: Leverage remains a primary constraint; any sustained earnings volatility, regulatory/regulatory-compliance costs, or capex overruns could cap upside.
  • Long-Term (3+ years)
    • Target: 58.0 (as a plausible long-horizon ceiling given the data set, with upside if structural improvements materialize)
    • Justification: In a longer horizon, the target is sensitive to debt management, regulatory environment, and revenue growth trajectories. The current framework suggests a high-case outcome around the 58 region if multiple catalysts align; a more pessimistic scenario could keep the price in the 40s.
    • Key drivers: Debt reduction trajectory, sustained dividend sustainability, efficiency gains, and potential value creation from network monetization and enterprise services.
    • Risks: Structural debt burden, slower-than-expected growth, rising competition for telecom services, and macro headwinds.

Key Risks & Opportunities

  • Key Risks:
    • High leverage and interest-rate sensitivity due to large debt load.
    • Regulatory and regulatory-cost exposure in a heavily regulated telecom environment.
    • Revenue growth uncertainties in a mature telecom market.
    • Potential for more aggressive capex or slower cash flow conversion than expected.
  • Key Opportunities:
    • Sustained high dividend yield supports total return, especially in a low-rate environment.
    • Free cash flow generation and potential buybacks or debt reduction could lift equity value.
    • Stabilization of customer ARPU, network monetization, and potential cost efficiencies.

Investment Recommendation

  • Recommendation: Hold
  • Time Horizon: 12-24 months
  • Rationale: Valuation is attractive on forward earnings, and the dividend remains compelling. Near-term technicals are oversold, suggesting possible upside toward the median target, but the balance sheet and earnings revision dynamics warrant a cautious stance. A hold provides exposure to potential upside if the company can show continued cash flow strength and disciplined capital allocation without triggering higher leverage or margin compression.
  • Expected Return Potential (12-24 months):
    • Base-case (to Median): approximately 16–20% upside from current levels, subject to earnings stability and macro conditions.
    • Bull-case (to High): ~40–45% upside if a favorable mix of cash flow, capital allocation, and multiple expansion occurs.
    • Bear-case (to Low): modest, around 2–5% downside risk if earnings pressure or debt costs rise meaningfully.

Notes on Price Levels Drawn

  • The chart now shows three horizontal lines at:
    • Low Target: 42.00 (green)
    • Median Target: 48.00 (orange)
    • High Target: 58.00 (red)
  • Each line is extended 30 days forward from 2025-10-10 to 2025-11-09, aligning with the instruction to extend the lines to the right edge.

Key Data Tables (selected)

Valuation & Financial Snapshot

  • Current price: 40.83
  • Market cap: $172.15B
  • Enterprise value: $346.79B
  • Trailing P/E: 9.50
  • Forward P/E: 8.63
  • P/B: 1.67
  • ROE: 18.45%
  • ROA: 5.20%
  • Profit margin: 13.28%
  • Gross margin: 59.49%
  • Operating margin: 23.28%
  • Debt/Equity: 167.44
  • Total cash: $3.47B
  • Total debt: $174.74B
  • Dividend yield: 6.68%
  • 5-year avg dividend yield: 5.89%
  • Beta: 0.37

Analyst Consensus & Price Targets

  • Current price: 40.83
  • Number of analysts: 23
  • Target Low: 42.00
  • Target Median: 48.00
  • Target High: 58.00
  • Target Mean: 48.59
  • Implied upside to Median: ~17.5%; to High: ~42%; to Low: ~3.0%

Earnings Summary (latest five quarters)

  • 2025-06-30: Diluted EPS 1.18; Net Income From Continuing Operations $5.003B; EBITDA $12.883B; Normalized Income $4.9348B; Total Revenue $34.504B; Operating Income $8.172B
  • 2025-03-31: Diluted EPS 1.15; Net Income $4.879B; EBITDA $12.682B; Normalized Income $4.8097B; Revenue $33.485B; Operating Income $7.978B
  • 2024-12-31: Diluted EPS 1.18; Net Income $5.005B; EBITDA $12.718B; Normalized Income $4.9348B; Revenue $35.681B; Operating Income $7.421B
  • 2024-09-30: Diluted EPS 0.78; Net Income $3.306B; EBITDA $10.432B; Normalized Income $3.2346B; Revenue $33.330B; Operating Income $5.926B
  • 2024-06-30: Diluted EPS 1.09; Net Income $4.593B; EBITDA $12.215B; Normalized Income $4.5237B; Revenue $32.796B; Operating Income $7.818B

EPS Trend (latest read)

  • 0q: Current 1.1935; 7d 1.20023; 30d 1.20358; 60d 1.20417; 90d 1.20389
  • +1q: Current 1.0904; 7d 1.0882; 30d 1.08631; 60d 1.08881; 90d 1.09748
  • 0y: Current 4.68912; 7d 4.69312; 30d 4.69449; 60d 4.70239; 90d 4.67001
  • +1y: Current 4.83735; 7d 4.84261; 30d 4.84386; 60d 4.84556; 90d 4.82441

EPS Revisions (recent)

  • 0q: UpLast7days 0; UpLast30days 0; DownLast30days 5; DownLast7Days 3
  • +1q: UpLast7days 1; UpLast30days 1; DownLast30days 2; DownLast7Days 1
  • 0y: UpLast7days 1; UpLast30days 2; DownLast30days 4; DownLast7Days 1
  • +1y: UpLast7days 0; UpLast30days 2; DownLast30days 2; DownLast7Days 1

Technical Indicators

  • 50-day MA (latest close date 2025-10-09): about 43.5
  • RSI (14): 27.3 (latest)
  • MACD (12,26,9): negative around -0.60 (latest)

Conclusion

  • The stock presents an attractive dividend yield and a valuation that looks inexpensive on forward earnings, but the debt burden remains a meaningful risk. The current price sits below the 50-day moving average and RSI indicates oversold conditions, implying potential near-term upside if market dynamics stabilize. The consensus targets imply meaningful upside over 12 months, with a high-case scenario near $58 if earnings/revenue stability and capital-allocation benefits materialize. Given the risk/reward, a Tactical Hold with potential for upside over 12–24 months fits best, assuming continued cash-flow strength and prudent capital management.

If you’d like, I can provide a more granular scenario analysis (e.g., baseline, bear, and bull scenarios with explicit revenue, EBITDA, and cash-flow assumptions) or tailor the price-target narrative to a specific time horizon or risk tolerance.

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