Why Verizon Communications (VZ) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Based in New York, Verizon Communications Inc. offers communication services in the form of local phone service, long-distance calls, wireless and data services. In January 2006, Verizon completed its merger with MCI Corporation, a leader in long-distance and data networking services. With the acquisition of Alltel Wireless Corp. in early 2009, Verizon has surpassed AT&T Inc. as the largest wireless carrier in North America, serving millions of customers nationwide.
VZ is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 9.5X for the current fiscal year compared to the Wireless National industry's P/E 20.8X. Additionally, VZ has a PEG Ratio of 3.4 and a Price/Cash Flow ratio of 5X. Value investors should also note VZ's Price/Sales ratio of 1.4X.
A company's earnings performance is important for value investors as well. For fiscal 2025, six analysts revised their earnings estimate higher in the last 60 days for VZ, while the Zacks Consensus Estimate has increased $0.01 to $4.7 per share. VZ also holds an average earnings surprise of 2.2%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding VZ to their portfolios.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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