Verizon Communications (NYSE: VZ) shares currently have a dividend yield of 4.20%. Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company has a P/E ratio of 122.80 The average volume for Verizon Communications has been 13,407,700 shares per day over the past 30 days Verizon Communications has a market cap of $145.8 billion and is part of the telecommunications industry Shares are up 16.6% year to date as of the close of trading on Tuesday TheStreet Ratings rates Verizon Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- VZ's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 4.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Diversified Telecommunication Services industry average. The net income increased by 15.8% when compared to the same quarter one year prior, going from $1,686.00 million to $1,952.00 million.
- Net operating cash flow has increased to $7,531.00 million or 26.42% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.78%.
- The gross profit margin for VERIZON COMMUNICATIONS INC is rather high; currently it is at 62.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.63% trails the industry average.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full Verizon Communications Ratings Report.
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