Wireless giant Verizon has seen its stock rise about 8% since the beginning of the year in 2024, and has rebounded about 34% from its mid-2023 lows. The company recently announced a series of better-than-expected results for the fourth quarter of 2023. Earnings for the quarter were in line with expectations, at $1.08. Sales were $35.1 billion, down about 0.6% from the previous year, but this figure exceeded expectations. Verizon also seems to be working on his 5G front. Verizon was handicapped compared to T-Mobile in its 5G mid-band spectrum, which offers both wider coverage and higher speeds. Last year, the company saw the number of postpaid phone contracts in its consumer segment decline for three consecutive quarters. However, Verizon is acquiring and deploying a new C-band spectrum to address these gaps, and this appears to be reflected in the company’s numbers as well. In Q4 2023, Verizon added 449,000 postpaid phone customers (compared to 217,000 in Q4 2022).
Verizon also has a strong position in fixed wireless broadband, which is favored by U.S. customers due to its flexibility and low costs. Last quarter, Verizon added 375,000 fixed wireless broadband connections, bringing its total subscriber base to more than 3 million. This is also helping the company drive subscriber growth. Verizon also introduced its myPlan program, which allows wireless consumers to add a la carte features, such as video streaming subscriptions, to their cell phone plans. These features are popular with customers and can help increase revenue and profits per user.
Looking at a longer period, VZ stock has suffered a steep decline of 35% from the $60 level in early January 2021 to about $40 currently, while the S&P 500 index has fallen about 40% over the past three years. Rose. Notably, VZ stock has underperformed the broader market in each of the past three years. The stock returned -12% in 2021, -24% in 2022, and -4% in 2023. In comparison, the S&P 500 returned 27% in 2021, -19% in 2022, and 24% in 2023. – show it VZ underperformed S&P In 2021, 2022 and 2023. actual, Consistently outperforms the S&P 500 – Good times and bad times – The past few years have been difficult for individual stocks. He targets leading companies in the telecommunications services sector such as GOOG, META, and NFLX, as well as mega-sized companies such as TSLA, MSFT, and AMZN. In contrast, the Trefis high-quality portfolio, which includes a collection of 30 stocks, Outperformed the S&P 500 every year over the same period. why is that? As a group, Headquarters portfolio stocks carried less risk and delivered better returns compared to the benchmark index. It’s not been a roller coaster ride, as evidenced by the performance metrics of our corporate portfolio. Given the current uncertain macroeconomic environment of high oil prices and rising interest rates, VZ may face a similar situation to his 2021, 2022 and 2023. Underperform the S&P Will it recover in the next 12 months?
We maintain a marginally positive view on Verizon stock, with an expected price of $43, approximately 5% above the current market price. The stock trades at around 9 times consensus 2024 earnings, which is reasonable in our view. Verizon’s future dividend yield is also over 6%. Although we don’t see a big revenue upside, the company’s expansion of 5G coverage will help it gain more subscribers and give it an advantage over its large wireless retail base of over 120 million subscribers. We believe we can upsell your plans. Check out our analysis. verizon review: Is it expensive or cheap? Learn more about Verizon’s rating and how it compares to its competitors.
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