Why Should You Stay Away from Verizon Communications Inc. (VZ)

Verizon Communications . (NYSE:VZ) will announce third quarter results later this week. The stock is under because Verizon Communications is losing its subscribers amid changing industry environment. Verizon Communications is burning a lot of cash amid various acquisitions ( Yahoo! , AOL, a stake in Vodafone ) to diversify its business. As a result the company’s debt has crossed $110 billion mark.

Analysts think that Verizon Communications ’s competitor AT&T is in a better position to face the challenges because it is acquiring Time Warner , the biggest media entity. Verizon Communications ’s efforts on Yahoo! and AOL will take a lot of time to realize into a tangible benefit. If Verizon Communications reports a subscriber decline in the third quarter, the stock will plummet heavily.

Over the current book year the total revenue will be 124,94 billion USD (consensus estimates). This is slightly lower than 2016's revenue of 125,98 billion USD.

Historical revenues and results Verizon Communications Communications plus estimates 2017

stock analysis

The analysts expect for 2017 a net profit of 15,3 billion USD. The majority of the analysts expects for this year a profit per share of 3,76 USD. So the price/earnings-ratio equals 12,79.

Huge dividend Verizon Communications Communications

For this year the analysts expect a dividend of 2,33 USD per share. The dividend yield is then 4,85 percent. The average dividend yield of the telecommunications companies equals a limited 1,28 percent.

Recent target prices around 47 USD

The most recent recommendations for the telecommunications company are from Barclays , Cantor Fitzgerald and Beleggers Belangen.

Based on the current number of outstanding shares Verizon Communications Communications's market capitalization is 195,88 billion USD.

At 15.36 the stock trades 0,44 percent lower at 48,09 USD.

Historical stock prices Verizon Communications Communications2007-2017

stock analysis verizoncommunications

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