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>
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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>).
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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.
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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>.
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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.
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