Wall Street’s take on Verizon
In the previous part of this series, we looked at some aspects of Verizon’s (VZ) value proposition in the global telecom market. We looked at the carrier’s forward dividend yield as well as forward earnings multiples among its global peers as of February 25, 2016. Now we’ll look at select market-centric views and metrics for Verizon. We’ll start with how Wall Street analysts view Verizon.
Most Wall Street recommendations for Verizon (VZ) were “hold” as of February 25, 2016. Among the overall analyst recommendations, ~44.1% were “buy” recommendations. There were no “sell” recommendations on the stock.
The median target price by Wall Street analysts for Verizon was $50.50 as of February 25, 2016. It’s worth noting that the carrier’s closing price was $51.11 as of the same date.
Price performance of Verizon and select global telecom titans
Now we’ll look at Verizon’s and some select peers’ price performances. As of February 25, 2016, during the past three-month period, Verizon’s price has increased by ~13.8%. The relative movement in this metric for AT&T (T) was ~11.7% as of the same date.
As of February 25, 2016, in the global telecom market, the stock prices of Deutsche Telekom (DTEGY), Telefonica (TEF), and America Movil (AMX) fell by ~7.1%, ~14.4%, and ~19.6%, respectively, during the three-month period.
Instead of taking a direct exposure to Verizon stock, you may take a diversified exposure to the telecom company by investing in the SPDR Dow Jones Industrial Average ETF (DIA).
The ETF held ~1.8% in Verizon at the end of December 2015. Note that Verizon was the only telecom player in this ETF.