A month has gone by since the last earnings report for Verizon Communications (VZ) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Verizon due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Verizon Communications Inc. before we dive into how investors and analysts ...

The company's new CEO is looking to make some drastic cuts right out of the gate.A key reason investors may want to buy shares of Verizon Communications (VZ +0.71%) is for its dividend. Not only does the telecom giant offer a mouthwatering yield of 6.7%, but it has also increased its payout for 19 straight years. For income investors, there can be a lot of value in holding on to the stock for the long term.But often when a yield is this high, investors question whether it's really safe. If a dividend ends u ...

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Core Insights - Verizon Communications Inc. is a leading telecommunications company with a market cap of $169.5 billion, providing a range of services including wireless voice, data, broadband, and fiber services [1] - The company is classified as a large-cap stock, emphasizing its size and influence in the telecom industry, supported by investments in 5G infrastructure and network reliability [2] Performance Overview - Verizon's stock has decreased 14.3% from its 52-week high of $47.36, with an 8.2% decline over the past three months, underperforming the Dow Jones Industrial Average [3][4] - Over the past 52 weeks, Verizon's shares have fallen 7.7%, while the Dow Jones has returned 5.3%, and year-to-date, Verizon is up 1.5% compared to the Dow's 10.7% increase [4] Earnings Report - On October 29, Verizon reported mixed Q3 earnings, with adjusted EPS of $1.21, a 1.7% increase year-over-year, exceeding analyst estimates [5] - Operating revenue rose 1.5% year-over-year to $33.8 billion but fell short of Wall Street expectations by 1.1% [5] - The company raised its dividend for the 19th consecutive year, enhancing investor confidence [5] Competitive Positioning - Verizon has underperformed compared to its rival AT&T Inc., which gained 12% over the past 52 weeks and 13.6% year-to-date [6] - Despite recent challenges, analysts maintain a moderately optimistic outlook for Verizon, with a consensus rating of "Moderate Buy" and a mean price target of $47.30, indicating a 16.5% potential upside [6]

Core Viewpoint - AT&T and Verizon are struggling to find new growth opportunities as their performance stagnates, with their combined market capitalization halved since early 2020, while the S&P 500 has risen significantly [1][2][4]. Group 1: Market Position and Performance - In the early 1980s, AT&T was a leading technology giant with a 5.5% market share in the S&P 500, but now AT&T and Verizon together account for less than 0.7% [2]. - Their combined market capitalization is approximately $250 billion, which is about half of what it was in early 2020 [2]. - Verizon's revenue from mobile and broadband services grew only 1% year-over-year in Q2, while AT&T reported a 2.4% increase [4]. Group 2: Challenges and Competition - The companies face challenges from rising interest rates and liabilities related to outdated lead-covered cables, but many issues stem from their own decisions [4]. - The telecommunications market is saturated, making growth difficult, especially with significant debt burdens [4]. - T-Mobile's merger with Sprint has created a strong competitor offering lower prices, and DISH Network's partnership with Amazon is set to provide mobile services at competitive rates [5]. Group 3: Strategic Decisions - AT&T's past investments, including a $200 billion foray into the media sector, have not yielded expected results and have left the company with a net debt of $130 billion [5]. - Verizon has been more conservative in spending but invested $53 billion in 5G spectrum, which has not yet provided returns as the initial hype has subsided [5]. - Both companies are attempting to protect profit margins by raising prices and cutting costs, including closing retail locations [6]. Group 4: Future Directions - There are limited options for AT&T and Verizon, including protecting profit margins and potentially divesting fixed-line networks to focus on faster-growing wireless broadband [6]. - The trend of bundling services between cable and telecom companies is increasing, which may enhance customer retention and long-term profitability [6].

Core Insights - AT&T and Verizon are major players in the mobile and wireless connectivity sector, each offering a wide range of communication and business solutions [1][2] AT&T Overview - AT&T is experiencing positive momentum in its postpaid wireless business, characterized by a lower churn rate and increased adoption of higher-tier unlimited plans [3] - The company is focused on enhancing its mobile 5G, fixed wireless, and edge computing services to drive growth [3] - AT&T has agreed to acquire wireless spectrum licenses from EchoStar for $23 billion, which will add significant low-band and mid-band spectrum to its portfolio, enhancing its market presence and operational efficiency [4] - Despite these efforts, AT&T faces challenges such as a nationwide wireless service outage that has impacted customer trust and increased competition from Verizon and T-Mobile [5] Verizon Overview - Verizon is capitalizing on the growing demand for its 5G services, supported by disciplined engineering and infrastructure investments [6] - The company is seeing strong adoption of its 5G and fixed wireless broadband services, aided by flexible pricing plans [7] - Verizon is expanding its Fios Forward initiative to promote digital inclusion and enhance service offerings for underserved households [9] - The company is also facing intense competition, leading to price wars and high capital expenditures for its 5G network build-out [10] Financial Estimates - The Zacks Consensus Estimate for AT&T's 2025 sales indicates a year-over-year growth of 2.1%, while EPS is expected to decline by 8.8% [11] - For Verizon, the 2025 sales estimate suggests a growth of 2.3%, with EPS expected to grow by 2.4% [13] Price Performance and Valuation - AT&T is viewed as more attractive from a valuation perspective, with a price/sales ratio of 1.44 compared to Verizon's 1.88 [14] - Over the past year, AT&T has gained 10.9%, while Verizon has declined by 9.4% [16] - Both companies currently hold a Zacks Rank 3 (Hold), but AT&T is considered to have a slight advantage in terms of price performance and valuation metrics [15]

Core Insights - Conagra Brands, a 105-year-old company with over 20 national food brands, is projected to achieve more than $11.6 billion in sales this year while modernizing its portfolio for future growth [1] - The company's stock has declined 37% year-to-date, making it one of the worst performers in the S&P 500, which has resulted in an increased dividend yield of 8% [2] - Conagra has a trailing payout ratio of 78% and has increased its dividend for the past six years, indicating a commitment to returning value to shareholders [7] Conagra Brands - Conagra is focusing on modernizing its product offerings to drive future growth [1] - The company has experienced a significant stock decline, which has led to a high dividend yield, attracting value investors [2] - The dividend payments from Conagra are projected to grow, with historical growth rates averaging 6.3% annually over the past five years [3] - The current dividend yield of Conagra is significantly higher than the S&P 500 average of 1.2% [5] - Conagra's price-to-earnings (P/E) and price-to-sales (P/S) ratios are near 10-year lows, suggesting potential value [7] United Parcel Service (UPS) - UPS has also faced a challenging year, with a 28% decline in stock price, resulting in a dividend yield of almost 7% [8] - The company has maintained or increased its dividend annually since going public in 1999, reflecting its financial strength [9] - UPS's dividend payout ratio is currently at 91%, but it is expected to decrease as earnings per share (EPS) are projected to grow by 4% and 11% in 2026 and 2027, respectively [10] Pfizer - Pfizer's stock has seen a modest decline of 5% year-to-date, with a current dividend yield of 6.9%, the highest in the healthcare sector [11] - The company has a 98% dividend payout ratio, which is projected to decline to 75% by 2026, indicating potential for sustainable dividends [12] - Pfizer has a strong track record of dividend increases over the past 16 years, supported by its balance sheet strength [12] Verizon - Verizon offers a dividend yield of 6.7%, making it one of the top dividend payers in the S&P 500 [13] - The company has a commitment to returning value to shareholders, with a 21-year track record of annual dividend increases [14] - Verizon's current P/E ratio is less than 9 times earnings for the next 12 months, indicating potential undervaluation [15]

Verizon is laying off approximately 168 employees in Washington state, including analysts, engineers and retail workers. ...

​Verizon Communications Inc. (NYSE:VZ) is one of the Best Communication and Media Stocks to Buy Now. On November 18, analyst Laurent Yoon from Bernstein reiterated a Hold rating on Verizon Communications Inc. (NYSE:VZ) with a $46 price target. ​The rating follows a report by Reuters released on November 13, which noted that the company’s new CEO is planning to cut 15,000 jobs. The report highlighted this layoff to be the largest ever in the company’s history. The layoff is anticipated to affect 15% of the ...