Wall Street’s take on Verizon
Earlier, we looked at some aspects of Verizon’s (VZ) value proposition in the global telecommunications (telecom) market. We looked at its forward earnings multiples and forward dividend yield compared to those of its global peers as of April 25, 2016.
Now, let’s look at select views and metrics of the company. We’ll start with Wall Street analysts’ views on Verizon.
As you can see in the above chart, the majority of analysts recommended “holds” on Verizon as of April 25, 2016. These recommendations represented ~66.7% of the total. The remaining ~33.3% of analysts recommended “buys” on the stock. There were no “sell” recommendations on the stock.
The median target price set by analysts for Verizon was $53 as of April 25, 2016. The carrier’s closing price was $50.76 as of the same date.
Verizon’s price performance
Now, let’s look at Verizon’s stock price performance in the past one-month and three-month periods. As of April 25, 2016, Verizon’s stock had risen by ~5.2% in the past three months. Verizon’s stock had fallen by ~5.2% in the past month as of the same date.
Instead of taking direct exposure to US telecom players’ stocks, you may want to consider taking diversified exposure to the telecom space by investing in the SPDR S&P 500 ETF (SPY). SPY held a total of ~2.8% in AT&T (T), Verizon, CenturyLink (CTL), Frontier Communications (FTR), and Level 3 Communications (LVLT) at the end of March 2016.