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).

Below is a comprehensive, data-driven analysis of Verizon Communications Inc. (VZ) as of 2025-10-08, including the requested price-target trendlines and a structured outlook across fundamental, earnings, technical, and analyst dimensions.

  • Note on drawing: I have plotted three horizontal trendlines for the price targets you provided and extended them 30 days into the future from today (2025-10-08) to 2025-11-07. Colors:
    • Low Target (42.00): Green
    • Median Target (48.00): Blue
    • High Target (58.00): Red The lines are visible on the chart and extend to the right edge as requested.

Executive Summary

  • Verizon (VZ) appears moderately undervalued on an earnings basis (forward P/E around 8.8, trailing P/E around 9.6) with a very generous dividend yield (6.66%), supported by stable cash generation and a large, mature service franchise.
  • Key caveat: the balance sheet shows very high leverage (debt to equity ~167) and meaningfully negative near-term price momentum (price below the 50-day MA and MACD negative). The RSI has shown oversold levels recently, which can imply potential for a near-term bounce if sentiment improves or earnings revisions stabilize.
  • Analysts offer upside optionality: consensus targets imply meaningful upside from current levels, with a median target of 48.0 and a high target of 58.0. However, EPS revisions in the near term have skewed modestly to downgrades in recent periods, which could cap upside unless earnings momentum or debt dynamics improve.

Fundamental Analysis

  • Valuation snapshot (current data)
    • Current price: 41.4
    • Market cap: 174.56B
    • Enterprise value: 347.30B
    • Trailing P/E: 9.63
    • Forward P/E: 8.75
    • Price to Book: 1.69
    • 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 to equity: 167.44x
    • Total cash: 3.47B
    • Total debt: 174.74B
    • Dividend yield: 6.66%
    • Five-year avg dividend yield: 5.89%
    • Beta: 0.366
  • Observations
    • The dividend is unusually high for a telecommunications operator and provides meaningful income support; however, it also reflects a higher capital return policy that can constrain internal reinvestment in growth over time.
    • Leverage is a material risk: total debt dwarfs cash, and the high debt load can exert pressure under rising rates or tighter credit conditions.
    • Profitability remains solid for a mature telecom: EBITDA and operating margins are respectable; the negative balance sheet risk and cyclicality of the sector are the principal concerns.

Analyst Price Targets

  • Number of analyst opinions: 23
  • Current price: 41.4
  • Price targets (low/median/high): 42.0 / 48.0 / 58.0
  • Target mean: 48.59
  • Interpretation: The consensus implies potential upside from current levels, with a broad range that reflects mix of risk/reward across analysts. The mean/median targets sit well above today’s price, suggesting a favorable longer-run view if the company can sustaincash generation and manage leverage.

Recent Earnings Summary (selected items)

  • Quarter-by-quarter highlights (selected metrics)
    • 2025-06-30:
      • Normalized EBITDA: 12.795B
      • EBITDA: 12.883B
      • Net income (continuing ops): 5.003B
      • Diluted EPS: 1.18
      • Basic EPS: 1.18
    • 2025-03-31:
      • Normalized EBITDA: 12.592B
      • EBITDA: 12.682B
      • Net income (continuing ops): 4.879B
      • Diluted EPS: 1.15
      • Basic EPS: 1.16
    • 2024-12-31:
      • Normalized EBITDA: 12.622B
      • EBITDA: 12.718B
      • Net income (continuing ops): 5.005B
      • Diluted EPS: 1.18
      • Basic EPS: 1.19
    • 2024-09-30 and 2024-06-30 show similar ranges in EBITDA/Net Income and EPS around 0.78-1.09 for quarterly figures, with normalized income around 4.3-4.9B and EPS in the 1.0–1.2 range for those quarters.
  • Takeaways
    • The company delivered steady operating profitability and cash generation across recent quarters. The EPS per quarter fluctuates within a narrow band (roughly $1.15–$1.18 in the latest reported quarters), contributing to a fairly stable but not explosive earnings trajectory.
    • Normalized earnings (adjusted for unusual items) remain solid, critical for evaluating true operating performance versus GAAP noise.
    • Discretionary items (unusual/adjustment items) show some variability but not extreme swings, which helps in the interpretability of ongoing earnings power.

EPS Trend

  • Quarterly and annual EPS trajectory (selected data)
    • Current 0q: 1.1938
    • 7 days ago: 1.2008
    • 30 days ago: 1.2036
    • 60 days ago: 1.2042
    • 90 days ago: 1.2030
    • +1q (next year): 1.0888
    • 0y (trailing 4 quarters): 4.6888
    • +1y (forward 4 quarters): 4.8363
  • Interpretation
    • The last reported quarter shows EPS around 1.19, with a slight negative drift in the next year forward estimate (1q) versus the most recent quarter, implying modest near-term pressure on quarterly earnings.
    • The trailing-12-month EPS sits around 4.69, with forward 12-month EPS around 4.84, suggesting modest growth potential if macro conditions hold and cost pressures remain contained.

EPS Revisions

  • Summary by period (up/down in revisions)
    • 0q: Up revisions = 0 in both 7/30d windows; Down revisions: 5 in last 30 days, 3 in last 7 days
    • +1q: Up revisions = 1 in last 7 days; Up last 30 days = 1; Down last 30 days = 2; Down last 7 days = 1
    • 0y: Up last 7 days = 1; Up last 30 days = 2; Down last 30 days = 4; Down last 7 days = 1
    • +1y: Up last 7 days = 0; Up last 30 days = 2; Down last 30 days = 2; Down last 7 days = 1
  • Interpretation
    • The revisions data show a net tilt toward downgrades in the near term (0q and 0y periods), with some occasional upticks in longer-range (+1q, +1y). Overall, sentiment appears cautious in the near term, which aligns with the current price action and MACD momentum.

Technical Analysis

  • Price action context
    • Price trades around 41.4 (recent close), below the 50-day moving average (MA ≈ 43.6 as of early Oct 2025), signaling near-term weakness.
    • 50-day MA is trending higher into October (from ~42.3–43.0 in late July to ~43.6 by early Oct), indicating a potential for a slow baseline improvement if price tries to re-wedge above the MA.
    • RSI (14) has oscillated through the mid-to-high range recently but was near 26.5 on 2025-10-07, indicating oversold conditions and potential for a near-term bounce if downside pressure eases.
    • MACD (12,26,9) is negative as of the latest data, signaling bearish momentum, with the MACD line below the signal line.
  • Moving Averages
    • 50-day MA: ~43.6 (near-term resistance above current price)
    • No explicit 200-day MA provided here, but the relatively flat/low growth in price suggests the longer-term trend has not accelerated higher.
  • RSI
    • Current readings show oversold territory at times (mid-20s to mid-30s), implying potential buy-side risk if price stabilizes and buyers re-enter.
  • MACD
    • Negative MACD indicates current momentum remains bearish, but it could reverse if earnings revisions stabilize and cash generation remains robust.

Analyst Consensus & Price Targets

  • Current price: 41.4
  • Targets (low/median/high): 42.0 / 48.0 / 58.0
  • Number of analysts: 23
  • Target mean: 48.59
  • Drivers of consensus
    • Valuation is attractive on a forward P/E basis (forward ~8.8x) given SNAP of cash generation and strong dividend yield.
    • The high debt burden remains a critical risk; improvements in leverage and deleveraging over time could unlock upside via multiple expansion and stronger free cash flow.
    • The dividend yield is a meaningful cushion and may support a floor near current levels if the company maintains cash generation.

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

  • Short-Term (3 months): Target price: 46.00
    • Justification: The near term faces mixed momentum (MACD negative, RSI oversold, price below 50-day MA), but the dividend yield supports a floor and the median target sits near 48. The stock could rebound into the high-40s as buyers step in when the oversold RSI prompts technical traders to cover shorts and as the price attempts to re-test the 50-day MA.
    • Key drivers:
      • Stabilization of near-term EPS revisions (reductions in downgrades or upgrades stabilizing around 0q and 0y estimates)
      • Cash flow consistency and ability to cover the high dividend with sustainable FCF
      • Any improvement in debt management or balance-sheet flexibility
  • Mid-Term (12 months): Target price: 48.00
    • Justification: The median analyst target aligns with roughly 15%+ upside from current levels, supported by a relatively low forward P/E and steady profitability. In 12 months, a return to more normal EPS revisions and some progress on balance-sheet deleverage could allow multiple expansion toward the median target.
    • Key drivers:
      • Debt reduction or more favorable financing terms, preserving cash for dividends and buybacks
      • Stable or improving service revenues and margins (operating margin ~23% historically)
      • Consistent buyback activity and/or capital allocation that enhances per-share value
  • Long-Term (3+ years): Target price: 58.00
    • Justification: The high target implies meaningful upside if the company can improve leverage dynamics, sustain robust cash flow, and potentially grow revenue in core segments (wireless, services). The dividend remains a significant yield, which adds to total return even if price appreciation is incremental.
    • Key drivers:
      • Debt reduction and leverage normalization (improving cash flow to debt metrics)
      • Margin stability or expansion (ongoing cost discipline, scale benefits)
      • Regulatory and competitive backdrop favorable to pricing power and ARPU (average revenue per user) growth
      • Strategic initiatives (e.g., network modernization, monetization of new services) that sustain revenue growth
  • Range-based perspective
    • The Low/Median/High targets imply a broad 3Q-12M upside range from roughly 42 to 58, with a central path near 48. The near-term path could be constrained by leverage and momentum signals but is supported by the dividend and relatively attractive valuation.

Key Risks & Opportunities

  • Key Risks
    • Elevated leverage and debt burden pose a material financial risk if interest rates rise or cash flow deteriorates.
    • Near-term earnings revisions show more downgrades on a relative basis, which could cap upside until momentum improves.
    • Broad macro risk in telecom (economic slowdowns, cap-ex cost pressures) and competitive dynamics (price competition, bundling, spectrum costs).
    • Price momentum currently weak (price below 50-day MA, negative MACD) which could prolong the consolidation period.
  • Key Opportunities
    • A bounce in RSI from oversold levels could trigger a short- to intermediate-term rally toward the 46–48 range or higher if momentum improves.
    • Sustained free cash flow generation could support deleveraging and optionality for capital returns (buybacks, higher dividend coverage), potentially driving multiple expansion.
    • The very high dividend yield provides a cushion and could attract income-focused investors, supporting a floor near recent levels.

Technical Indicators Recap (Last 60 Days)

  • 50-day Moving Average: ~43.6; price (41.4–41.5 range in late Sep/early Oct) trading below MA suggests near-term underperformance.
  • RSI (14): Recently depressed (as low as mid-20s to low-30s near recent dates), indicating oversold conditions and potential reversal risk to the upside if catalysts appear.
  • MACD (12,26,9): Negative and diverging from zero in recent observations, indicating bearish momentum, with potential for a reversal if price stabilizes and earnings revisions improve.

Investment Recommendation

  • View: Hold with modest upside potential in a stabilized earnings and balance-sheet context; potential for drawdown protection via the high dividend yield.
  • Time horizon: 12–24 months
  • Expected return potential: Moderate upside from current levels, driven primarily by multiple expansion and dividend yield retention, contingent on deleveraging progress and stabilization of near-term earnings revisions.

Important numerical data in Markdown tables

Valuation Snapshot

  • Current price: 41.4
  • Market cap: 174,555,856,896
  • EV: 347,296,497,664
  • Trailing P/E: 9.63
  • Forward P/E: 8.75
  • P/B: 1.69
  • ROE: 18.45%
  • ROA: 5.20%
  • Profit margin: 13.28%
  • Gross margin: 59.49%
  • Operating margin: 23.28%
  • Debt to equity: 167.44
  • Total cash: 3,467,000,064
  • Total debt: 174,740,996,096
  • Dividend yield: 6.66%
  • 5-year avg dividend yield: 5.89%
  • Beta: 0.366

Analyst Targets

  • Number of opinions: 23
  • Current price: 41.4
  • Target low: 42.0
  • Target median: 48.0
  • Target high: 58.0
  • Target mean: 48.59

Recent Earnings Summary (selected)

  • Quarter: 2025-06-30
    • Normalized EBITDA: 12.795B
    • EBITDA: 12.883B
    • Net income (continuing ops): 5.003B
    • Diluted EPS: 1.18
    • Basic EPS: 1.18
  • Quarter: 2025-03-31
    • Normalized EBITDA: 12.592B
    • EBITDA: 12.682B
    • Net income (continuing ops): 4.879B
    • Diluted EPS: 1.15
    • Basic EPS: 1.16
  • Quarter: 2024-12-31
    • Normalized EBITDA: 12.622B
    • EBITDA: 12.718B
    • Net income (continuing ops): 5.005B
    • Diluted EPS: 1.18
    • Basic EPS: 1.19
  • Trailing quarters show stable profitability and EPS modestly around 1.15–1.20 per quarter.

EPS Trend (selected)

  • Current 0q: 1.1938
  • 7 days ago: 1.2008
  • 30 days ago: 1.2036
  • 60 days ago: 1.2042
  • 90 days ago: 1.2030
  • +1q (forward): 1.0888
  • 0y trailing: 4.6888
  • +1y forward: 4.8363

EPS Revisions (selected)

  • 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 (selected)

  • 50-day MA (as of 2025-10-07): 43.6
  • Closing price (2025-10-07): 41.4
  • RSI (latest around 26.5 on 2025-10-07)
  • MACD (latest): -0.3 (signal -0.1)

Charts/Line Drawn (as requested)

  • Low Target 42.00: green line drawn from 2025-10-08 to 2025-11-07
  • Median Target 48.00: blue line drawn from 2025-10-08 to 2025-11-07
  • High Target 58.00: red line drawn from 2025-10-08 to 2025-11-07
  • Line IDs for reference (internal):
    • 42 line: f455fb7c34ae47d38aeb0473adb77b35
    • 48 line: 41994674aa9145ebb7df44782ab1bf78
    • 58 line: c23f540296164fe498223dbb6469314c

If you’d like, I can:

  • Update the price-target analysis with a sensitivity table showing how the short-, mid-, and long-term targets would change if key inputs shift (e.g., a 1% move in forward earnings or a 100bp shift in debt costs).
  • Add a more granular breakdown of the earnings results by segment (if you have segment-level data) to refine margin and cash-flow assumptions.
  • Provide a trade idea with entry/exit points and risk controls based on the updated chart lines and momentum indicators.

Would you like me to expand the price-target sensitivity analysis or add a segment-level earnings breakdown?

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