Verizon Communications (NYSE:VZ) Stock, Quote.Headers.trade-ideas

Verizon Communications

Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 29 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.

T-mobile logo Photo by viewimage on Shutterstock

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Analyst Ratings

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TMUS

T-Mobile&#39;s unveils a three-year AI-focused plan at its Capital Markets Day, which received positive reactions from analysts.

T-Mobile Announces 3-Year AI Plan Analyst Says Could Mean &#39;Sizable Capital Returns To Shareholders&#39;

Federal Reserve

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Large Cap

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ORCL

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Investors are anticipating the first cut to the federal funds rate in over four years at the September FOMC meeting. The market is divided on the magnitude of the cut, which could trigger significant reactions. Goldman Sachs data reveals the top S&amp;P 500 stocks to watch during Fed easing cycles.

20 S&amp;P 500 Stocks That Move The Most When The Fed Starts Cutting Interest Rates

Verizon Communications Inc. (VZ)

News

FYBR

SPDR Series Trust SPDR Portfolio S&P Sector Neutral Dividend ETF

SPDG

Verizon to book $1.7-$1.9B severance charge in Q3 due to voluntary separation program. Plans to downsize employees and discontinue assets/businesses.

Verizon To Record Up To $1.9 Billion In Costs For Layoffs, Asset Sales In Q3

Verizon Communications Inc

VIZIO Holding Corp

Vizsla Silver Corp

T-Mobile US Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>) shares were climbing on Thursday, after the company <a href="https://www.benzinga.com/markets/equities/24/09/40939403/t-mobile-surpasses-2021-capital-markets-day-goals-sets-new-ambitions-boosts-dividend-more">unveiled a three-year AI-focused plan</a>.
Here are some key takeaways from the company's Capital Markets Day in San Francisco.
<h1 class="wp-block-heading">Scotiabank On T-Mobile US</h1>
Analyst Maher Yaghi reiterated a Sector Outperform rating while raising the price target from $197.00 to $215.50.
T-Mobile detailed its growth plans for the next three years, the financial output of which "looks impressive with continuation of leading wireless subscriber loading, service revenue growth and FCF growth compared to US peers," Yaghi said in a note. 
The plan is focused on improving customer experience, unlike many telecom companies that have made cost-cutting their main focus, he added.
"We believe the expected 5% CAGR service revenue growth up to 2027 and the 8% Adj. FCF growth metrics, which do not include any of the pending acquisitions already announced, should support further stock upside," the analyst wrote. This should generate "sizable capital returns to shareholders," while still leaving the company with around $20 billion in cash "to further de-lever the balance sheet or undertake additional M&amp;A," he further stated.
<h1 class="wp-block-heading">Oppenheimer On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59282ae6290fa7000185325b/timothy-horan">Analyst Timothy Horan</a> maintained an Outperform rating while lifting the price target to $215.
"The company has transformed to the leading wireless carrier in spectrum depth, network performance, growth, and FCF margins, and is taking the lead in GenAI on both networks and CX," Horan wrote in a note. The company aims to "reduce inbound calls by 75% and resolve 100% of upgrades and 50%-plus of activations digitally," he added. &nbsp;
T-Mobile plans to use OpenAI for its upcoming IntentCX platform to increase customer engagement, the analyst stated. The company has also partnered with NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to "accelerate the development of AI-RAN," he further wrote.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
<h1 class="wp-block-heading">KeyBanc Capital Markets On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59f8cd40efacff000111b43b/brandon-nispel">Analyst </a><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59f8cd40efacff000111b43b/brandon-nispel">Brandon Nispel</a> reaffirmed an Overweight rating and price target of $230.
T-Mobile&#8217;s 2027 guidance has "a number of upside levers from the contribution of Metronet, Lumos and US Cellular, plus the execution of &#8216;Hero Projects&#8217; and growth in underpenetrated Small Markets and Rural, Business and now First Responders," Nispel said.
T-Mobile has set targets that would make it "a larger Home Broadband provider by customer count" than both AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) and Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), which highlights that the company is "not at a strategic disadvantage despite lower Fiber home passed targets," the analyst stated.
<h1 class="wp-block-heading">Goldman Sachs On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5805f8a2846faa000106ab15/james-schneider">Analyst James Schneider</a> maintained a Buy rating and price target of $205.
T-Mobile has "ambitious targets" for broadband growth" and announced both revenue and cost initiatives around AI, Schneider said. Management is guiding to 2027 Service Revenue of $75-$76 billion and adjusted EBITDA of $38-$39 billion, ahead of consensus of $74.2 billion and $37.9 billion, respectively, he added.
While the company's financial guidance was "broadly in line with elevated expectations heading into the event," it was modestly disappointing for capital returns, the analyst stated. "We came away from the event with increased confidence in the sustainability of T-Mobile's growth trajectory, particularly with respect to its broadband initiatives," he further wrote.
<h1 class="wp-block-heading">RBC Capital Markets On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5846ee55ee7bf6000154d12b/jonathan-atkin">Analyst Jonathan Atkin</a> reiterated an Outperform rating and price target of $200.
The company announced a new shareholder return program through 2027 worth $80 billion, Atkin said. It will use $10 billion to "fund all announced transaction, including USM, Lumos, Metronet, and spectrum payments," he stated.
T-Mobile has allocated $50 billion for share buybacks and dividends, "with dividend per share growth in the double digits," the analyst stated. He added, however, that $20 billion has been set aside as "a buffer for acquisitions and deleveraging apart from buybacks."
TMUS Price Action: Shares of T-Mobile US had risen by 1.80% to $200.22 at the time of publication on Thursday.
Read More:   • <a href="https://www.benzinga.com/markets/equities/24/09/40932937/apple-iphone-16-selling-at-a-greater-rate-than-last-year-says-t-mobile-ceo-amid-reports-of-lower">Apple iPhone 16 Selling At A &#8216;Greater Rate Than Last Year,&#8217; Says T-Mobile CEO Amid Reports Of Lower Demand: &#8216;People Are Buying Pros, They&#8217;re Buying Maxs…They&#8217;re Buying Up The Food Chain&#8217;</a>
Photo: Viewimage on Shutterstock

T-Mobile Announces 3-Year AI Plan Analyst Says Could Mean 'Sizable Capital Returns To Shareholders'

<a href="https://www.verizon.com/about/news/back-market-and-visible-verizon-announce-us-partnership">https://www.verizon.com/about/news/back-market-and-visible-verizon-announce-us-partnership</a>
Back Market and Visible by Verizon Announce U.S. Partnership
&nbsp;
Refurbished Tech Marketplace to Feature Exclusive Visible Plan Offer&nbsp;in Time for Holiday Shopping Season
Today, <a href="https://www.backmarket.com/en-us">Back Market</a>, the leading global marketplace for Verified Refurbished tech, announced a new partnership with <a href="https://www.visible.com/">Visible</a>, Verizon's award-winning app-based wireless service, offering unlimited data, talk and messaging. The exclusive offer was unveiled by Back Market Founder and CEO, Thibaud Hug De Larauze and Visible Managing Director, Jeremy Bolton during a Paris press conference.
Available now, every smartphone purchased on Back Market will come with access to a $20/month offer on the Visible plan for the first twelve months, with standard rates applying afterwards. This is a savings of $60 per line on the Visible plan for the first year, and if you factor in the cost of a new device compared to the cost of a Verified Refurbished device on Back Market, the savings are even greater. The combined value of these two brands makes access to high-quality technology and an exceptional wireless experience more affordable than ever.
"Together, Back Market and Visible are reaching the next generation of consumers who care about sustainability and getting the best deal," said Thibaud Hug De Larauze, Founder and CEO, Back Market. "We launched this partnership to continue to provide U.S. customers more convenience, affordability, and access to refurbished tech that offers the same factory-quality devices as new, at far less cost and impact on the environment. Visible shares our commitment to growing the circular economy for consumer technology and understands that to build a sustainable business you need to start with an amazing customer experience."
"We are excited to partner with Back Market to give U.S. customers a new option that's not only affordable, but environmentally-friendly," said Jeremy Bolton, General Manager, Visible. "We've always been committed to bringing our customers the best, most innovative, and most accessible digital wireless service, and now, we're proud to do that in a way that limits the impact of technology on the environment."
In partnership with Visible, Back Market's customers are within a click of best-in-class wireless service, including unlimited data on Verizon's 5G and 4G LTE networks. With this exclusive offer, Back Market continues to be a one-stop-shop for all consumer electronic needs, especially during the upcoming holiday shopping season as shoppers look for quality, affordable devices and trusted mobile plans, all while promoting sustainability through its circular model.
Details of the exclusive Visible plan offer on Back Market include:
<ul>
<li>$20/month for 12 months followed by standard rates for the Visible plan</li>
<li>Unlimited data, talk &amp; text on Verizon's 5G &amp; 4G LTE networks</li>
<li>Coverage of 99% of the U.S. population</li>
<li>High-risk spam and robocall blocking</li>
<li>Free talk and text to Mexico &amp; Canada</li>
<li>Access to Visible's 15-day network free trial</li>
</ul>
These savings come with no trade off in quality. Customers on Back Market always receive a 30-day money-back guarantee and a one-year warranty when purchasing devices, and this year <a href="https://www.jdpower.com/business/press-releases/2024-us-wireless-retail-experience-study-volume-2">J.D. Power</a> recognized Visible for delivering the best purchase experience among value mobile virtual network operators.
Back Market's mission is to lower the environmental impact of tech by extending devices lifespans. Customers can purchase high-quality refurbished electronics and devices that are better than new at a fraction of the price.

'Back Market And Visible By Verizon Announce U.S. Partnership'

Investors are on edge in the lead-up to the Wednesday Federal Open Market Committee interest rate decision that is expected to deliver the first cut to the federal funds rate <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40921827/fed-decision-is-here-5-things-investors-need-to-know-ahead-of-wednesdays-pivotal-in">in over four years.</a>
The market is divided on the magnitude of the anticipated rate cut. Traders are assigning a 59% probability to a 50-basis-point cut, while a 41% chance is placed on a more modest 25-basis-point reduction. The size of the rate cut is crucial as it could trigger significant market reactions.
Should the Fed opt for a 50-basis-point cut, it may be perceived as an acknowledgment that interest rates are overly restrictive. This could lead to increased expectations for further rate cuts in the coming months, potentially fueling risk sentiment and driving stock prices higher.
Conversely, a 25-basis-point cut might disappoint investors who are betting on a more aggressive measure.
Since the start of 2022, the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), has experienced an average move of plus or minus 1.3% during FOMC events, reflecting the market&#8217;s high sensitivity to Fed policy decisions.
Goldman Sachs equity analysts, including John Marshall, analyzed stock movements during the first rate cuts in the previous three Fed easing cycles (Sept. 18, 2007, July 31, 2019 and March 3, 2020).
The data highlights the average moves of several key S&amp;P 500 stocks with liquid options during these periods.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Rank</th>
<th>Name</th>
<th>Absolute Average Move</th>
</tr>
</thead>
<tbody>
<tr>
<td>1</td>
<td>Caesars Entertainment Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CZR#NASDAQ">CZR</a>)</td>
<td>5.9%</td>
</tr>
<tr>
<td>2</td>
<td>Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>5.5%</td>
</tr>
<tr>
<td>3</td>
<td>Capital One Financial Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>)</td>
<td>4.6%</td>
</tr>
<tr>
<td>4</td>
<td>Charles Schwab Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>)</td>
<td>4.6%</td>
</tr>
<tr>
<td>5</td>
<td>Mastercard Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>)</td>
<td>4.5%</td>
</tr>
<tr>
<td>6</td>
<td>Fortinet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>)</td>
<td>4.3%</td>
</tr>
<tr>
<td>7</td>
<td>Marriott International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAR#NASDAQ">MAR</a>)</td>
<td>4.2%</td>
</tr>
<tr>
<td>8</td>
<td>American Express Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>)</td>
<td>3.8%</td>
</tr>
<tr>
<td>9</td>
<td>Newmont Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>)</td>
<td>3.7%</td>
</tr>
<tr>
<td>10</td>
<td>Deere &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DE#NYSE">DE</a>)</td>
<td>3.6%</td>
</tr>
<tr>
<td>11</td>
<td>BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>)</td>
<td>3.6%</td>
</tr>
<tr>
<td>12</td>
<td>Texas Instruments Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>)</td>
<td>3.5%</td>
</tr>
<tr>
<td>13</td>
<td>3M Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>)</td>
<td>3.3%</td>
</tr>
<tr>
<td>14</td>
<td>Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>)</td>
<td>3.2%</td>
</tr>
<tr>
<td>15</td>
<td>JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>)</td>
<td>3.2%</td>
</tr>
<tr>
<td>16</td>
<td>Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>)</td>
<td>3.0%</td>
</tr>
<tr>
<td>17</td>
<td>Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>)</td>
<td>3.0%</td>
</tr>
<tr>
<td>18</td>
<td>Starbucks Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>)</td>
<td>2.9%</td>
</tr>
<tr>
<td>19</td>
<td>Visa Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>)</td>
<td>2.7%</td>
</tr>
<tr>
<td>20</td>
<td>Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>)</td>
<td>2.3%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40908202/10-etfs-investors-secretly-bought-before-the-feds-make-or-break-interest-rate-cal">10 ETFs Investors Secretly Bought Before The Fed&#8217;s Make-Or-Break Interest Rate Call</a></li>
</ul>
Federal Reserve illustration created using artificial intelligence via MidJourney.

20 S&P 500 Stocks That Move The Most When The Fed Starts Cutting Interest Rates

Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) expects to book a severance charge of $1.7 billion–$1.9 billion in the third quarter due to the previously announced <a href="https://www.verizon.com/about/investors/sec-filings" target="_blank" rel="noreferrer noopener">voluntary separation program</a>.
In June 2024, Verizon shared plans to downsize 4,800 employees by the end of March 2025, with over half of these employees exiting in September 2024.
In September, Verizon plans to discontinue certain real estate assets and exit non-strategic portions of certain businesses, leading to asset and business rationalization charges of $230 million–$380 million in the third quarter of 2024.
In July, Verizon reported a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39883078/verizon-q2-earnings-wireless-revenue-and-broadband-subs-gain-traction-sales-fall-short-of-expectati" rel="noreferrer noopener">topline growth of</a> 0.6% to $32.8 billion, missing the consensus estimate of $33.1 billion. &nbsp;The company ended the quarter with 11.5 million broadband subscribers, up 17.2%. Postpaid phone net additions were 148,000, beating consensus estimates of 118,000.
Last week, Verizon <a href="https://www.benzinga.com/markets/equities/24/09/40727235/verizon-to-acquire-frontier-in-20b-deal-reaffirms-fy24-outlook" target="_blank" rel="noreferrer noopener">agreed to acquire</a> Frontier Communications Parent, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) for $20 billion to boost its fiber and wireless services.
Verizon stock is up 28% in the last 12 months. Investors can gain exposure to the stock through Invesco Dow Jones Industrial Average Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DJD#NYSE">DJD</a>) and SPDR Series Trust SPDR Portfolio S&amp;P Sector Neutral Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPDG#NYSE">SPDG</a>).
Price action: VZ stock is down 0.15% at $43.68 at last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40838900/amazon-e-commerce-is-a-loss-leader-its-real-money-is-in-services-says-analyst">Amazon E-Commerce Is A &#8216;Loss-Leader&#8217; … Its Real Money Is In &#8216;Services,&#8217; Says Analyst</a></li>
</ul>
Photo: Shutterstock

AAPL

Apple Announces iPhone 16 Lineup Available For Upgrade Starting September 13, With Carrier Promotions Offering Savings Up To $1,000

Guidance

Verizon Expects To Record A Severance Charge In Range Of $1.7B-$1.9B In Q3; Plans To Cease Use Of Certain Real Estate Assets And Exit Non-Strategic Portions Of Certain Businesses; Outlook Asset And Business Rationalization Charges In Range Of $230M-$380M In Q3

ADTN

ATUS

CABO

CMCSA

CXDO

FCC Chair Rosenworcel Wants More Competition To SpaceX's Internet Satellite Constellation Starlink

In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) against its key competitors in the Diversified Telecommunication Services industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
<h3>Verizon Communications Background</h3>
Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 29 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.
<table>
<thead>
<tr>
<th>Company</th>
<th>P/E</th>
<th>P/B</th>
<th>P/S</th>
<th>ROE</th>
<th>EBITDA (in billions)</th>
<th>Gross Profit (in billions)</th>
<th>Revenue Growth</th>
</tr>
</thead>
<tbody>
<tr>
<td>Verizon Communications Inc</td>
<td>16.06</td>
<td>1.87</td>
<td>1.34</td>
<td>4.82%</td>
<td>$12.21</td>
<td>$20.32</td>
<td>0.61%</td>
</tr>
<tr>
<td>AT&amp;T Inc</td>
<td>12.36</td>
<td>1.46</td>
<td>1.27</td>
<td>3.38%</td>
<td>$11.86</td>
<td>$18.36</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Chunghwa Telecom Co Ltd</td>
<td>26.36</td>
<td>2.64</td>
<td>4.32</td>
<td>2.59%</td>
<td>$22.32</td>
<td>$20.54</td>
<td>1.13%</td>
</tr>
<tr>
<td>PT Telkom Indonesia (Persero) Tbk</td>
<td>12.89</td>
<td>2.32</td>
<td>2</td>
<td>4.2%</td>
<td>$19044.0</td>
<td>$26415.0</td>
<td>1.27%</td>
</tr>
<tr>
<td>Telefonica Brasil SA</td>
<td>17.30</td>
<td>1.28</td>
<td>1.66</td>
<td>1.77%</td>
<td>$5.25</td>
<td>$6.07</td>
<td>7.43%</td>
</tr>
<tr>
<td>KT Corp</td>
<td>9.43</td>
<td>0.59</td>
<td>0.38</td>
<td>2.32%</td>
<td>$1797.51</td>
<td>$4340.82</td>
<td>-0.02%</td>
</tr>
<tr>
<td>Telecom Argentina SA</td>
<td>7.12</td>
<td>0.48</td>
<td>1.79</td>
<td>1.28%</td>
<td>$523.84</td>
<td>$627.58</td>
<td>-8.33%</td>
</tr>
<tr>
<td>IDT Corp</td>
<td>26.55</td>
<td>4.39</td>
<td>0.79</td>
<td>2.6%</td>
<td>$0.02</td>
<td>$0.1</td>
<td>0.12%</td>
</tr>
<tr>
<td>Average</td>
<td>16.0</td>
<td>1.88</td>
<td>1.74</td>
<td>2.59%</td>
<td>$3057.83</td>
<td>$4489.78</td>
<td>0.17%</td>
</tr>
</tbody>
</table>
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 </style>By carefully studying Verizon Communications, we can deduce the following trends: 
<ul>
<li>
At 16.06, the stock's Price to Earnings ratio significantly exceeds the industry average by 1.0x, suggesting a premium valuation relative to industry peers.
</li>
<li>
Considering a Price to Book ratio of 1.87, which is well below the industry average by 0.99x, the stock may be undervalued based on its book value compared to its peers.
</li>
<li>
Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 1.34, which is 0.77x the industry average.
</li>
<li>
The company has a higher Return on Equity (ROE) of 4.82%, which is 2.23% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
</li>
<li>
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $12.21 Billion is 0.0x below the industry average, suggesting potential lower profitability or financial challenges.
</li>
<li>
The gross profit of $20.32 Billion is 0.0x below that of its industry, suggesting potential lower revenue after accounting for production costs.
</li>
<li>
The company's revenue growth of 0.61% exceeds the industry average of 0.17%, indicating strong sales performance and market outperformance.
</li>
</ul>
<h3>Debt To Equity Ratio</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725980454_0.png" alt="debt to equity" />
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When assessing Verizon Communications against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:
<ul>
<li>
Among its top 4 peers, Verizon Communications has a higher debt-to-equity ratio of 1.8.
</li>
<li>
This implies a greater reliance on debt financing, which can expose the company to higher financial risk and potential challenges.
</li>
</ul>
<h3>Key Takeaways</h3>
For Verizon Communications, the PE ratio is high compared to peers, indicating potential overvaluation. The PB and PS ratios are low, suggesting undervaluation relative to industry competitors. In terms of ROE, Verizon shows strong performance, while EBITDA and gross profit margins are lower than industry averages. However, Verizon's revenue growth rate is higher than its peers, indicating potential for future growth in the Diversified Telecommunication Services sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Trading Ideas

Evaluating Verizon Communications Against Peers In Diversified Telecommunication Services Industry

Investors with a lot of money to spend have taken a bullish stance on Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with VZ, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 8 uncommon options trades for Verizon Communications.
This isn't normal.
The overall sentiment of these big-money traders is split between 62% bullish and 37%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $173,520, and 3 are calls, for a total amount of $117,104.
<h3>Predicted Price Range</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $38.0 and $46.0 for Verizon Communications, spanning the last three months.
<h3>Analyzing Volume &amp; Open Interest</h3>
In today's trading context, the average open interest for options of Verizon Communications stands at 4005.29, with a total volume reaching 5,562.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Verizon Communications, situated within the strike price corridor from $38.0 to $46.0, throughout the last 30 days.
<h3>Verizon Communications Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725902143_0.png" alt="Options Call Chart" />
<h3>Biggest Options Spotted:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>VZ</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>04/17/25</td>
<td>$4.85</td>
<td>$4.8</td>
<td>$4.85</td>
<td>$38.00</td>
<td>$59.1K</td>
<td>30</td>
<td>1</td>
</tr>
<tr>
<td>VZ</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/13/24</td>
<td>$0.4</td>
<td>$0.37</td>
<td>$0.4</td>
<td>$42.00</td>
<td>$40.1K</td>
<td>382</td>
<td>1.1K</td>
</tr>
<tr>
<td>VZ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/16/26</td>
<td>$4.1</td>
<td>$3.9</td>
<td>$3.9</td>
<td>$40.00</td>
<td>$39.0K</td>
<td>12.9K</td>
<td>0</td>
</tr>
<tr>
<td>VZ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/20/25</td>
<td>$3.3</td>
<td>$3.25</td>
<td>$3.26</td>
<td>$42.00</td>
<td>$32.6K</td>
<td>2.3K</td>
<td>228</td>
</tr>
<tr>
<td>VZ</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$1.48</td>
<td>$1.46</td>
<td>$1.46</td>
<td>$41.00</td>
<td>$31.3K</td>
<td>9.5K</td>
<td>542</td>
</tr>
</tbody>
</table>

<h3>About Verizon Communications</h3>
Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 29 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.
<h3>Present Market Standing of Verizon Communications</h3>
<ul>
<li>Currently trading with a volume of 8,682,319, the VZ's price is up by 3.0%, now at $42.38. </li>
<li>RSI readings suggest the stock is currently may be approaching overbought.</li>
<li>Anticipated earnings release is in 43 days.</li>
</ul>
<h3>What Analysts Are Saying About Verizon Communications</h3>
A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $43.0.
<ul>
<li>Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on Verizon Communications with a target price of $44. </li>
<li>Reflecting concerns, an analyst from RBC Capital lowers its rating to Sector Perform with a new price target of $42.</li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Verizon Communications, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

Behind the Scenes of Verizon Communications's Latest Options Trends

RBC Capital analyst Jonathan Atkin reiterates Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) with a Sector Perform and maintains $42 price target.

RBC Capital Reiterates Sector Perform on Verizon Communications, Maintains $42 Price Target

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>META</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/06/24</td>
<td>$500.00</td>
<td>$36.7K</td>
<td>4.5K</td>
<td>10.3K</td>
</tr>
<tr>
<td>GOOGL</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/13/24</td>
<td>$157.50</td>
<td>$34.3K</td>
<td>1.1K</td>
<td>5.3K</td>
</tr>
<tr>
<td>SIRI</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$3.00</td>
<td>$43.8K</td>
<td>3.2K</td>
<td>4.3K</td>
</tr>
<tr>
<td>RBLX</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/06/24</td>
<td>$42.50</td>
<td>$25.2K</td>
<td>414</td>
<td>4.1K</td>
</tr>
<tr>
<td>ASTS</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>09/13/24</td>
<td>$29.50</td>
<td>$78.3K</td>
<td>147</td>
<td>3.7K</td>
</tr>
<tr>
<td>CMCSA</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$42.50</td>
<td>$87.5K</td>
<td>4.4K</td>
<td>2.5K</td>
</tr>
<tr>
<td>PARA</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$10.00</td>
<td>$111.1K</td>
<td>19.9K</td>
<td>2.0K</td>
</tr>
<tr>
<td>TTWO</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>09/13/24</td>
<td>$165.00</td>
<td>$46.8K</td>
<td>37</td>
<td>1.8K</td>
</tr>
<tr>
<td>VZ</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$43.00</td>
<td>$44.2K</td>
<td>13.5K</td>
<td>1.4K</td>
</tr>
<tr>
<td>DIS</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/04/24</td>
<td>$93.00</td>
<td>$25.2K</td>
<td>1.0K</td>
<td>364</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• For META (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), we notice a put option sweep that happens to be bearish, is expiring today. Parties traded 210 contract(s) at a $500.00 strike. This particular put needed to be split into 23 different trades to become filled. The total cost received by the writing party (or parties) was $36.7K, with a price of $175.0 per contract. There were 4526 open contracts at this strike prior to today, and today 10302 contract(s) were bought and sold. 
• For GOOGL (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), we notice a call option sweep that happens to be bullish, expiring in 7 day(s) on September 13, 2024. This event was a transfer of 637 contract(s) at a $157.50 strike. This particular call needed to be split into 30 different trades to become filled. The total cost received by the writing party (or parties) was $34.3K, with a price of $54.0 per contract. There were 1110 open contracts at this strike prior to today, and today 5307 contract(s) were bought and sold. 
• Regarding SIRI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>), we observe a call option sweep with bullish sentiment. It expires in 105 day(s) on December 20, 2024. Parties traded 1900 contract(s) at a $3.00 strike. This particular call needed to be split into 23 different trades to become filled. The total cost received by the writing party (or parties) was $43.8K, with a price of $23.0 per contract. There were 3298 open contracts at this strike prior to today, and today 4351 contract(s) were bought and sold. 
• For RBLX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>), we notice a call option sweep that happens to be bearish, is expiring today. Parties traded 260 contract(s) at a $42.50 strike. This particular call needed to be split into 23 different trades to become filled. The total cost received by the writing party (or parties) was $25.2K, with a price of $97.0 per contract. There were 414 open contracts at this strike prior to today, and today 4117 contract(s) were bought and sold. 
• Regarding ASTS (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>), we observe a call option sweep with bearish sentiment. It expires in 7 day(s) on September 13, 2024. Parties traded 364 contract(s) at a $29.50 strike. This particular call needed to be split into 35 different trades to become filled. The total cost received by the writing party (or parties) was $78.3K, with a price of $215.0 per contract. There were 147 open contracts at this strike prior to today, and today 3701 contract(s) were bought and sold. 
• Regarding CMCSA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>), we observe a call option trade with bearish sentiment. It expires in 42 day(s) on October 18, 2024. Parties traded 2500 contract(s) at a $42.50 strike. The total cost received by the writing party (or parties) was $87.5K, with a price of $35.0 per contract. There were 4484 open contracts at this strike prior to today, and today 2555 contract(s) were bought and sold. 
• Regarding PARA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>), we observe a put option trade with bearish sentiment. It expires in 133 day(s) on January 17, 2025. Parties traded 1950 contract(s) at a $10.00 strike. The total cost received by the writing party (or parties) was $111.1K, with a price of $57.0 per contract. There were 19919 open contracts at this strike prior to today, and today 2015 contract(s) were bought and sold. 
• For TTWO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>), we notice a call option trade that happens to be bearish, expiring in 7 day(s) on September 13, 2024. This event was a transfer of 1800 contract(s) at a $165.00 strike. The total cost received by the writing party (or parties) was $46.8K, with a price of $26.0 per contract. There were 37 open contracts at this strike prior to today, and today 1818 contract(s) were bought and sold. 
• Regarding VZ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), we observe a call option trade with bearish sentiment. It expires in 42 day(s) on October 18, 2024. Parties traded 1300 contract(s) at a $43.00 strike. The total cost received by the writing party (or parties) was $44.2K, with a price of $34.0 per contract. There were 13592 open contracts at this strike prior to today, and today 1441 contract(s) were bought and sold. 
• For DIS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), we notice a call option trade that happens to be bearish, expiring in 28 day(s) on October 4, 2024. This event was a transfer of 300 contract(s) at a $93.00 strike. The total cost received by the writing party (or parties) was $25.2K, with a price of $84.0 per contract. There were 1041 open contracts at this strike prior to today, and today 364 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more about unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ASTS

GOOGL

PARA

RBLX

SIRI

TTWO

10 Communication Services Stocks Whale Activity In Today's Session

Across the recent three months, 5 analysts have shared their insights on Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), expressing a variety of opinions spanning from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Verizon Communications, revealing an average target of $45.7, a high estimate of $51.00, and a low estimate of $42.00. This upward trend is evident, with the current average reflecting a 0.44% increase from the previous average price target of $45.50.
<img src="https://www.benzinga.com/files/images/story/2024/1725638413_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
The standing of Verizon Communications among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Brandon Nispel</td>
<td>Keybanc</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$44.00</td>
<td>$46.00</td>
</tr>
<tr>
<td>Dan Brennan</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Buy</td>
<td>$51.00</td>
<td>$48.00</td>
</tr>
<tr>
<td>Philip Cusick</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$45.00</td>
<td>$46.00</td>
</tr>
<tr>
<td>Jonathan Atkin</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Sector Perform</td>
<td>$42.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Maher Yaghi</td>
<td>Scotiabank</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$46.50</td>
<td>$45.50</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Verizon Communications. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Verizon Communications compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Verizon Communications's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/VZ/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Verizon Communications analyst ratings.</a>
<h2>Discovering Verizon Communications: A Closer Look</h2>
Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 29 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.
<h3>Breaking Down Verizon Communications's Financial Performance</h3>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Verizon Communications's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 0.61%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Verizon Communications's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.0% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Verizon Communications's ROE stands out, surpassing industry averages. With an impressive ROE of 4.82%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Verizon Communications's ROA excels beyond industry benchmarks, reaching 1.21%. This signifies efficient management of assets and strong financial health.
Debt Management: Verizon Communications's debt-to-equity ratio surpasses industry norms, standing at 1.8. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>How Are Analyst Ratings Determined?</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Assessing Verizon Communications: Insights From 5 Financial Analysts

<a href="https://www.axios.com/pro/media-deals/2024/09/06/frontier-verizon-bidder-open">https://www.axios.com/pro/media-deals/2024/09/06/frontier-verizon-bidder-open</a>
&nbsp;

'The Line For A Frontier Communications Topping Bid Looks Open; Verizon's Deal Is Not Necessarily A Lock' - Axios Pro

Keybanc analyst Brandon Nispel maintains Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) with a Overweight and lowers the price target from $46 to $44.

Keybanc Maintains Overweight on Verizon Communications, Lowers Price Target to $44

Signs of a cooling labor market last month pushed major U.S. stock averages lower on Thursday, ahead of the highly anticipated August jobs report set for release on Friday.
Private sector job creation came in at 99,000 for August, according to ADP data, marking the slowest pace of growth since January 2021 and missing <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40728795/private-employment-grows-by-99-000-in-august-sharply-misses-forecasts-of-140-000-">the forecast of 140,000.</a>
A stronger-than-expected services sector activity sentiment for August offered some relief to broader recession concerns, but an employment subindex bolstered hints of the ongoing cooling <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40732534/services-sector-activity-expands-more-than-expected-in-august-but-employment-growth">in the labor market.</a>
The S&amp;P 500 dropped below the 4,500 support level for the first time since mid-August, extending weekly losses to 2.9%, and is on track for its worst week since mid-April.
Tech stocks managed to pare losses, with semiconductor shares holding steady. Blue-chip stocks underperformed, as the Dow Jones slid 0.8%, while small-cap stocks fell 0.6%.
A decision from OPEC+ to delay an October oil production increase by two months supported crude prices and further pressured already fragile investor sentiment. West Texas Intermediate (WTI) crude stopped its decline after suffering its worst two-day slump since October 2023.
Treasury yields dipped slightly, and the U.S. dollar softened. Meanwhile, gold edged higher by 0.6%.
Natural gas was Thursday's standout performer, with Henry Hub prices surging over 5%. The U.S. Energy Information Administration reported a natural gas storage injection of 13 billion cubic feet (Bcf) for the week ending Aug. 30, significantly below historical averages and expectations.
Sentiment in crypto assets worsened, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) tumbling 3% to $56,170. 
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>% change</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,906.30</td>
<td>-0.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,495.09</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,132.72</td>
<td>-0.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,638.99</td>
<td>-0.8%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:52 p.m.</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.5% lower to $548.40.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.8% to $407.30.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.1% lower to $459.90.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.6% to $211.35.</li>
<li>The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up by 0.8%, while the Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 1.5%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rallied 4% after announcing it plans to roll out its Full Self-Driving (FSD) technology in China and Europe during the first quarter of 2025, pending regulatory approvals. The EV maker will also produce a six-seat Model Y variant in China, starting next year.</li>
<li>Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) announced Thursday it has reached an agreement to acquire Frontier Communications Parent Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NYSE">FYBR</a>) in an all-cash deal valued at approximately $20 billion. Shares of Verizon eased 0.6%, while those of Frontier Communication Parent plummeted 9% after rallying 37% on Wednesday.</li>
<li>United Steel Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) rose 4% after tumbling 17% Wednesday. According to Reuters, the Committee on Foreign Investment in the U.S. (CFIUS) has raised concerns about potential national security risks related to Nippon Steel&#8217;s planned $14.9 billion acquisition of U.S. Steel. </li>
<li>NIO Inc. &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) rallied 11% in reaction to upbeat quarterly results and improved guidance.</li>
<li>Other stocks reacting to earnings results included The Toro Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTC#NYSE">TTC</a>) down over 10%, Copart Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>) down 6.7%, Hewlett Packard Enterprise Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) down 5.3%, Core &amp; Main, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNM#NYSE">CNM</a>) down 0.7%, Credo Technology Group Holding Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRDO#NASDAQ">CRDO</a>) and C3.ai, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>), both down around 13%.</li>
<li>Companies reporting results after the close include Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Samsara Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IOT#NYSE">IOT</a>), DocuSign Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOCU#NASDAQ">DOCU</a>), Ui Path Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PATH#NYSE">PATH</a>) and Smartsheet Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMAR#NYSE">SMAR</a>). </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40718185/could-august-jobs-numbers-keep-recession-fears-at-bay-this-time-is-different-analys">Could August Jobs Numbers Keep Recession Fears At Bay? &#8216;This Time Is Different,&#8217; Analyst Says</a> Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a> on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!</li>
</ul>
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S&P 500 Falls Below 5,500 Points On Cooling Jobs Data, Tesla Leads Tech Gains, Natural Gas Spikes: What's Driving Markets Thursday?

Verizon CEO Says Frontier Deal Will Reduce Customer Churn

Frontier Communications Parent, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) shares are trading lower after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/g40725239/verizon-to-acquire-frontier" rel="noreferrer noopener">inked an acquisition deal</a> with Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>).
As per the terms, Verizon will acquire Frontier in an all-cash deal valued at $20 billion.
In particular, Verizon will acquire Frontier for $38.50 per share in cash, a 43.7% premium over Frontier&#8217;s 90-day volume-weighted average share price (VWAP) as of September 3, 2024.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/08/40318456/verizon-secures-4m-federal-contract-touts-new-security-infrastructure" rel="noreferrer noopener">Verizon Secures $4M Federal Contract, Touts New Security Infrastructure</a>
The acquisition will integrate Frontier&#8217;s advanced fiber network with Verizon&#8217;s extensive fiber and wireless assets, including Fios. Frontier&#8217;s 2.2 million fiber subscribers and 7.2 million fiber locations will join Verizon&#8217;s 7.4 million Fios connections.
This strategic buyout, involving the largest pure-play fiber internet provider in the U.S., will significantly enhance Verizon&#8217;s fiber footprint nationwide, boost its delivery of premium mobility and broadband services, and expand its intelligent edge network for digital innovations like AI and IoT.
Frontier has invested $4.1 billion in its fiber network over the past four years and plans to expand by an additional 2.8 million fiber locations by 2026.
The transaction has received unanimous approval from the Boards of Directors of both Verizon and Frontier.
The deal is expected to close in about 18 months, pending approval by Frontier shareholders, regulatory approvals, and other customary closing conditions.
Synergies: The transaction is expected to boost Verizon&#8217;s revenue and Adjusted EBITDA growth rates upon closing.
Verizon anticipates achieving at least $500 million in annual cost synergies through increased scale, distribution, and network integration by year three.
Outlook: Verizon reaffirmed FY24 guidance for wireless service revenue growth of 2.0% to 3.5%, adjusted EBITDA growth of 1.0% to 3.0%, and adjusted EPS of <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$4.50 to $4.70 (vs. cons. of $4.57)</a>.
The company reiterated the capital expenditures of $17.0 billion-$17.5 billion in FY24.
Investors can gain exposure to the stock via Invesco S&amp;P 500 Equal Weight Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>) and SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
Price Action: FYBR shares are down 9.72% at $34.92 premarket at the last check Thursday. VZ shares are up 1.21% to $41.98.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39911411/verizons-postpaid-net-adds-in-focus-these-analysts-dive-into-q2-results" target="_blank" rel="noreferrer noopener">Verizon Postpaid Net Adds Decline, But Broadband Growth Is &#8216;Close To The Best&#8217;: Analyst</a></li>
</ul>
Photo via Shutterstock

Movers

RSPC

Verizon To Acquire Frontier In $20B Deal, Reaffirms FY24 Outlook

General

Verizon Reaffirms Full-year 2024 Guidance, Projects To Generate At Least $500M In Annual Run-rate Cost Synergies, And Expects The Deal To Be Accretive To Revenue And Adjusted EBITDA Growth Upon Closing

The combination will integrate Frontier's cutting-edge fiber network into Verizon's leading portfolio of fiber and wireless assets, including its best-in-class Fios offering. Over approximately four years, Frontier has invested $4.1 billion upgrading and expanding its fiber network, and now derives more than 50% of its revenue from fiber products. Frontier's 2.2 million fiber subscribers across 25 states will join Verizon's approximately 7.4 million Fios connections1 in 9 states and Washington, D.C. In addition to Frontier's 7.2 million fiber locations, the company is committed to its plan to build out an additional 2.8 million fiber locations by the end of 2026.

Verizon Communications Has Agreed To Acquire Frontier Communications In An All-cash Transaction Valued At $20B Or Equivalent To $38.50 Per Share In Cash

The quarterly dividend is payable on November 1, 2024, to Verizon shareholders of record at the close of business on October 10, 2024.

Dividends

Verizon Boosts Quarterly Dividend From $0.6650 To $0.6775 Per Share

The communication industry's long-term growth is fueled by robust consumer demand for faster networks, increasing 5G adoption and rapid technological advances. Against this backdrop, it could be ideal to consider quality telecom stocks Verizon Communications (VZ), T-Mobile US (TMUS), and AT&T (T), which are leading the revolution. Keep reading... The telecom industry is undergoing a transformative phase with the adoption of 5G network and innovative capabilities of AI. Major companies are increasingly investing in infrastructure and planning for further technological advancements like 6G, resulting in substantial market growth avenues.
Amid this backdrop, investors could consider buying fundamentally sound communication stocks Verizon Communications Inc. (<a href="https://stocknews.com/stock/VZ/">VZ</a>), T-Mobile US, Inc. (<a href="https://stocknews.com/stock/TMUS/">TMUS</a>), and AT&amp;T Inc. (<a href="https://stocknews.com/stock/T/">T</a>) leading the 5G revolution.
The telecommunication industry is rapidly expanding with the widespread adoption of wireless networks and significant investments in infrastructure by major companies. Major leading telecom companies are attempting to accelerate the adoption of 5G technology and are already planning the deployment of next-generation 6G through strategic collaborations.
With this, the US telecom market is projected to reach $530.61 billion by 2029, exhibiting growth at a <a href="https://www.mordorintelligence.com/industry-reports/united-states-telecom-market">CAGR of 3.7%</a>. Continued efforts to expand network capacity with fiber and wireless deployments to meet the growing demand for faster networks will navigate the US telecom industry in the near future.
Besides, AI capabilities like enhanced network security, data analysis in real-time, immediate detection, and automated responses to security incidents are creating significant opportunities for the telecommunication segment. Also, the <a href="https://www.kbvresearch.com/ai-in-telecommunication-market/">5G network is a significant driver</a> for the growth of network optimization through AI.
With the vital role of AI in optimizing resource allocation, managing 5G network intricacies, and ensuring efficient data transmission, Global AI in the telecommunication market is set to revolutionize the current scenario. The segment is expected to reach $21.20 billion by 2030, registering a 40.4% CAGR.
Given these favorable market trends, let's look at the fundamentals of the top three <a href="https://stocknews.com/category/telecom-domestic/">Telecom - Domestic</a> stocks, beginning with the third choice.
Stock #3: Verizon Communications Inc. (<a href="https://stocknews.com/stock/VZ/">VZ</a>)
VZ provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities globally. The company operates in two segments, Verizon Consumer Group (Consumer); and Verizon Business Group (Business).
On September 13, VZ turned on new cell sites to bring fast and reliable 4G LTE and 5G Ultra Wideband service for the residents and visitors of Pooler, Port Wentworth, and Savannah. This step will result in improved connectivity for customers in the Savannah area.
On September 5, VZ and Frontier Communications Parent, Inc. entered into a definitive agreement under which Verizon will acquire Frontier in an all-cash transaction valued at $20 billion. The strategic acquisition will significantly expand V's fiber footprint, accelerating its delivery of premium mobility and broadband services to customers.
For the second quarter that ended on June 30, 2024, VZ's total operating revenues increased marginally year-over-year to $32.80 billion. Its operating income grew 8.3% from the year-ago value to $7.82 billion. The company's consolidated adjusted <a href="https://www.investopedia.com/terms/e/ebitda.asp">EBITDA</a> came in at $12.30 billion, indicating increase of 2.8% year-over-year.
Analysts expect VZ's revenue for the fourth quarter (ending December 2024) to increase 1.2% year-over-year to $35.54 billion. Its EPS for the same period is expected to grow 2.1% year-over-year to $1.10. Moreover, it has surpassed the consensus EPS estimates in three of the trailing four quarters.
Shares of VZ have surged 12.7% over the past six months and 34.2% over the past year to close the last trading session at $45.
VZ's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Stability. Within the <a href="https://stocknews.com/category/telecom-domestic/">Telecom - Domestic</a> industry, VZ is ranked #5 out of 18 stocks.
<a href="https://stocknews.com/stock/VZ/">Click here</a> to access additional ratings of VZ for Momentum, Value, Sentiment, Quality, and Growth.
Stock #2: T-Mobile US, Inc. (<a href="https://stocknews.com/stock/TMUS/">TMUS</a>)
TMUS provides mobile communications services internationally. The company offers voice, messaging, and data services to customers in postpaid, prepaid, wholesale, and other services.
On August 6, TMUS introduced Partner Plus, a new channel subsidy program to make it more cost-effective and accessible for businesses to experience the benefits of 5G laptops and 5G business internet. The program is beneficial for channel partners, original equipment manufacturers, and the businesses they serve to make 5G more accessible.
During the second quarter, which ended on June 30, 2024, TMUS' total revenues increased 3% year-over-year to $19.77 billion. Its adjusted EBITDA increased 8.8% from the year-ago value to $8.05 billion. The company's net income and EPS amounted to $2.93 billion and $2.49, up 31.7% and 33.9% from the prior year's quarter, respectively.
Furthermore, the company's adjusted free cash flow grew 54.3% from the year-ago value to $4.44 billion.
As per the company's full-year guidance, TMUS expects its adjusted free cash flow to range between $16.60 billion and $17 billion.
Street expects TMUS' revenue and EPS for the third quarter (ending September 2024) to increase 4.3% and 23.4% year-over-year to $20.08 billion and $2.47, respectively. Also, the company has topped the consensus EPS estimate in three of the trailing four quarters.
Shares of TMUS have surged 27.7% over the past six months and 46.2% over the past year to close the last trading session at $205.85.
TMUS' POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
TMUS has a B grade for Quality, Growth, Sentiment, and Stability. It is ranked #4 out of 18 stocks in the same industry.
In addition to the POWR Ratings we've stated above, we also have TMUS ratings for Momentum and Value. Get all TMUS ratings <a href="https://stocknews.com/stock/TMUS/">here</a>.
Stock #1: AT&amp;T Inc. (<a href="https://stocknews.com/stock/T/">T</a>)
T provides telecommunications and technology services internationally. It operates through two segments, Communications; and Latin America. It offers wireless voice and data communications services, and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers.
On September 11, T and Unsupervised signed a new agreement. The agreement is built upon a successful ongoing collaboration where Unsupervised's AI-powered Data Analyst software has identified over one hundred million dollars worth of opportunities having the potential to be deployed across business units at AT&amp;T.
On August 12, T's AT&amp;T IoT connectivity and network API was incorporated into Oracle Corporation's (<a href="https://stocknews.com/stock/ORCL/">ORCL</a>) Enterprise Communications Platform. The integration marked a crucial step in bringing real-time communications to Oracle's suite of cloud applications and enabling its industry cloud application customers to connect and manage their IoT devices on the T's network all in one platform.
For the second quarter that ended on June 30, 2024, T reported operating revenues of $29.80 billion. Its adjusted EBITDA increased 1.8% year-over-year to $11.34 billion. The company's net income and EPS came in at $3.95 billion and $0.49 for the quarter, respectively. Also, its free cash flow increased 8.7% from the prior year's quarter to $4.58 billion.
According to the company's full-year 2024 outlook, T expects wireless service revenue growth of 3% and broadband revenue growth of 7%+. It also expects adjusted EBITDA growth in the 3% range. The company's free cash flow is set in the range of $17 billion to $18 billion.
Street expects T's revenue for the first quarter (ending March 2025) to increase 1.8% year-over-year to $30.57 billion, and its EPS for the same period is also expected to grow 1.8% year-over-year to $0.56. For the fiscal year 2025, the company's revenue and EPS are expected to increase 1.7% and 3.3% year-over-year to $124.71 billion and $2.27.
T's shares have gained 28.7% over the past six months and 47.6% over the past year to close the last trading session at $22.27.
T's sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Quality. Within the Telecom - Domestic industry, T is ranked #2 out of 18 stocks.
In addition to the POWR Ratings we've stated above, we also have T ratings for Growth, Stability, Value, Sentiment, and Momentum. Get all T ratings <a href="https://stocknews.com/stock/T/">here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
TMUS shares were trading at $201.96 per share on Tuesday afternoon, down $3.89 (-1.89%). Year-to-date, TMUS has gained 27.36%, versus a 18.99% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/tmus-vz-t-3-communication-stocks-leading-the-5g-revolution/>3 Communication Stocks Leading the 5G Revolution</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Communication Stocks Leading the 5G Revolution

AT&T Stock: Take The Gains And Run, It's Time To Sell

As economic sentiments fluctuate, high-dividend stocks are the only ones that provide cushion regardless of the situation. To capture the steady market, you might consider investing in Verizon Communications (VZ), AT&T (T), and Altria Group (MO) this month. Keep reading… As we all know, dividend-paying stocks are a popular choice during market volatility, as they offer a stable and steady income stream even when the prices fluctuate. Thus, investors looking for such could consider adding high-dividend yield stocks like Verizon Communications Inc. (<a href="https://stocknews.com/stock/VZ/">VZ</a>), AT&amp;T Inc. (<a href="https://stocknews.com/stock/T/">T</a>), and Altria Group, Inc. (<a href="https://stocknews.com/stock/MO/">MO</a>) to their portfolios.
The elevated interest rates and the inflation worries are imminent in the economy. According to the Bureau of Economic Analysis (BEA), the PCE price index, excluding food and energy, increased <a href="https://www.bea.gov/data/personal-consumption-expenditures-price-index-excluding-food-and-energy">2.6% year-over-year</a> in the month of July. With inflation falling substantially, the <a href="https://www.euronews.com/business/2024/09/18/federal-reserve-is-set-to-cut-interest-rates-for-the-first-time-in-4-years">Fed is poised to cut interest rates</a> for the first time in four years.
On the other hand, with the U.S. job market weakened and unemployment still being noticeably present, it is concerning for the economy. However, the <a href="https://www.statista.com/statistics/273909/seasonally-adjusted-monthly-unemployment-rate-in-the-us/">unemployment rate</a> in the month of August was 4.2%, compared to 4.3% in July.
Despite the economic uncertainty, high-dividend yield stocks offer a promising future for investors. They not only provide a steady income but also have the potential for price appreciation. Moreover, these stocks act as a hedge against economic uncertainty, ensuring income regardless of the economy's momentum.
Given this backdrop, let's examine the fundamentals of the above-mentioned stocks in detail:
Verizon Communications Inc. (<a href="https://stocknews.com/stock/VZ/">VZ</a>)
VZ is a holding company that, through its subsidiaries, provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies. It operates through two segments: Verizon Consumer Group and Verizon Business Group.
On September 9, VZ announced that it would acquire Frontier Communications Parent, Inc. for a $20 billion cash deal. This acquisition will considerably expand VZ's fiber footprint and intelligent edge network for digital innovations like AI and IoT across the nation to current as well as new customers. Frontier's 2.2 million fiber subscribers will be joining VZ's connections.
On September 4, buoyed by strong financial performance, the company increased its quarterly <a href="https://www.investopedia.com/terms/d/dividend.asp">dividend</a> by $0.0125 to $0.6775 per share, payable to its shareholders on November 1, 2024.
VZ has raised its annual dividend for 18 consecutive years. It pays an annual dividend of $2.66, which translates to a yield of 6.02% at the current share price. Its four-year average dividend yield is 5.82%. Moreover, the company's dividend payouts have increased at an impressive CAGR of 2% over the past five years.
In the fiscal second quarter that ended on June 30, 2024, VZ's total operating revenues increased marginally year-over-year, amounting to $32.80 billion. Its operating income rose 8.3% from the year-ago value to $7.82 billion. The company's consolidated adjusted EBITDA came in at $12.30 billion, up 2.8% year-over-year, and its EPS stood at $1.09.
In addition, its retail postpaid phone net additions are 148,000, and retail postpaid net additions are 340,000.
According to VZ's guidance and outlook for its fiscal year 2024, it is projecting adjusted EBITDA to grow between 1% to 3%. Additionally, its adjusted EPS guidance ranges from $4.50 to $4.70. The company also expects total wireless services revenue growth to range between 2% and 3.5%.
Street expects VZ's revenue for the fiscal fourth quarter (ending December 2024) to increase marginally year-over-year to $35.54 billion. Its EPS for the same period is expected to register a 2.1% growth from the prior year, settling at $1.10. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters, which is promising.
The stock has gained 30.5% over the past year and 18% over the past nine months to close the last trading session at $44.08.
VZ's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
VZ has a B grade for Stability. It is ranked #5 out of 18 stocks in the <a href="https://stocknews.com/category/telecom-domestic/">Telecom - Domestic</a> industry. <a href="https://stocknews.com/stock/VZ/">Click here</a> to see the additional ratings for VZ (Growth, Value, Momentum, Sentiment, and Quality).
AT&amp;T Inc. (<a href="https://stocknews.com/stock/T/">T</a>)
T is a holding company that provides telecommunications and technology services internationally. The company operates through two segments: Communications and Latin America. It provides wireless and wireline telecom services to consumers and businesses worldwide.
On September 9, T expanded its high-speed fiber internet to new geographies, reaching more people. This expansion will be continued through joint ventures and other commercial open-access agreements and will aim to expand Gigapower's fiber footprint in new locations.
On August 1, the company paid a quarterly dividend of $0.2775 per share to its shareholders. T pays an annual dividend of $1.11 per share, which translates to a yield of 4.98% on the prevailing share price. Also, its four-year average dividend yield is 6.38%.
T's service from operating revenues for the second quarter (ended June 30, 2024) increased marginally year-over-year to $25.01 billion. Its attributable net income came in at $3.55 billion, and its earnings per share stood at $0.49. The company reported a free cash flow of $4.60 billion, indicating a 9.5% growth from the prior year's quarter.
Looking ahead, T anticipates full-year adjusted EBITDA for the fiscal year 2024 to be in the range of 3%, and capital investment and free cash flow are anticipated to be in the range of $21-$22 billion and $17-$18 billion, respectively. The company also projects adjusted EPS to range from $2.15 to $2.25.
Analysts expect T's revenue and EPS for the current year (ending December 2024) to be $122.68 billion and $2.19, respectively. For the fiscal year 2025, both its revenue and EPS are expected to grow by 1.7% and 3.5% from the prior year to $124.71 billion and $2.26, respectively.
T shares have surged 43% over the past year and 31.8% over the past nine months to close the last trading session at $21.78.
T's bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It also has a B grade for Quality. Within the same Telecom - Domestic industry, it is ranked #2 out of 18 stocks. <a href="https://stocknews.com/stock/T/">Click here</a> to see T's ratings for Growth, Value, Momentum, Stability, and Sentiment.
Altria Group, Inc. (<a href="https://stocknews.com/stock/MO/">MO</a>)
MO manufactures and sells smokeable and oral tobacco products. The company provides cigarettes mainly under the Marlboro brand, large cigars, and pipe tobacco under the Black &amp; Mild brand, moist smokeless tobacco, and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands. The oral tobacco segment products are under the name of on! brand.
On August 22, demonstrating its commitment to returning value to shareholders, the company declared a quarterly dividend of $1.02 per share, up 4.1% from the previous rate, payable to its shareholders on October 10.
With 54 years of consecutive dividend growth, MO pays an annual dividend of $4.08, which translates to a yield of 7.89% at the current share price. Its four-year average dividend yield is 8.03%. Also, the company's dividend payouts have increased at a CAGR of 4.4% over the past three years.
On June 21, MO received U.S. Food and Drug Administration (FDA) authorization for the marketing of NJOY's menthol e-vapor products. The marketing for the product will aim at smoke-free alternatives to traditional adult smokers.
For the second quarter of 2024, which ended on June 30, MO's oral products segment reported that net revenues increased 4.6% year-over-year to $711 billion.
The company's net earnings for the quarter amounted to $3.80 billion, representing an increase of 79.6% year-over-year, with its EPS growing 85.7% from the prior year's quarter to $2.21.
Building on this quarter's momentum, the company updated its guidance for 2024, MO now anticipates that the full-year adjusted EPS will range between $5.07 and $5.15, representing a growth of 2.5%-4.0% from its base in 2023.
The consensus revenue estimate of $5.35 billion for the fiscal third quarter (ending September 2024) represents a marginal increase year-over-year. The consensus EPS estimate of $1.35 for the current quarter indicates a 5.6% improvement year-over-year.
Over the past year, the stock has surged 21%, closing the last trading session at $50.50.
It's no surprise that MO has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Quality. Out of 10 stocks in the B-rated <a href="https://stocknews.com/category/tobacco/">Tobacco</a> industry, MO is ranked #5.
Beyond what is stated above, we've also rated MO for Growth, Value, Momentum, Stability, and Sentiment. Get all MO ratings <a href="https://stocknews.com/stock/MO/">here</a>.
What To Do Next?
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<hr />
VZ shares were trading at $44.11 per share on Wednesday afternoon, up $0.03 (+0.07%). Year-to-date, VZ has gained 22.88%, versus a 19.34% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Anushka Dutta</h2> <img src='https:/wp-content/uploads/2021/08/Anushka-Dutta_Headshot_3.jpg' style="float:left; padding:5px;width:125px;">Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.<a href="https://stocknews.com/authors/?author=anushka-dutta">More...</a>The post <a href=https://stocknews.com/news/vz-t-mo-3-high-dividend-yield-stocks-to-buy-before-september-ends/>3 High-Dividend Yield Stocks to Buy Before September Ends</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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