Its time to breakdown the second of the 5G stocks on my list. $VZ or Verizon is on deck.
Current Price: $56.16
52/Wk High: $62.22
52/Wk Low: $48.84
Read below for the breakdown!
First off Verizon is one of the largest communications companies in the game and the stock is extremely resistant to economic issues as well as COVID 19.
Secondly, the company has some debt but management has focused on getting that down and it helps that Verizon also has an “A” credit rating.
Verizon, on the other hand, is set to benefit from 5G. One major factor in their benefit will come from their leading ownership of 5G spectrum bands which is the frequency bands in which 5G uses. Verizon owns almost double what competitors like $T owns, putting them at a great advantage.
The company has also continued to deliver a string of beats on earnings. Verizon recently reported an earnings beat with a $1.26 EPS for Q1 versus the $1.22 consensus. Verizon also had excellent revenue once again with $31.6 billion in net Q1 reported revenue.
Verizon has also done well on its cash position and has built up net cash on hand of $7 billion in total. Their goal is to soon be at $10 billion in cash on hand in the near term.
Analysts are also bullish on the name with an average price target of $60.50/share and a high target of $70.00/share. I think this is right in line, especially given the acceleration in 5G due to COVID.
Big money is also bullish on the name with institutional ownership being at a total of 66.88%. Names like Vanguard Group, Black Rock, and State Street all have holdings over $9 billion all the way up to $19 billion.
Overall I like $VZ for some steady gains but it is definitely not in my opinion a get rich quick stock.
Disclaimer: This is not financial advice, simply opinion based on independent research.