Goldman Sachs on Verizon: Domestic Sales Are Its Strength


Apr. 13 2018, Updated 5:30 p.m. ET

Goldman Sachs on Verizon

Goldman Sachs has also shared its views on Verizon. In the telecom space, the investment company advised clients to focus on Verizon (VZ) as it believes it has the potential to perform well if the odds of trade war were to rise.

According to Goldman Sachs, Verizon has 100% US sales. Verizon plays a significant role in the US telecommunication industry, specifically in wireless services. Verizon is now focusing on 5G (fifth-generation) technology, striving to lead the 5G race. To learn more, read 

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Verizon’s performance

Verizon’s stock price rose marginally in March, by 0.2%, while broader-market S&P 500 (SPY) fell 2.7% due to growing concerns of a global trade war. On April 12, 2018, Verizon was trading at a trailing PE (price-to-earnings) multiple of 12.4x and a forward PE multiple of 10.5x. 

In comparison, the telecommunication industry was trading at a trailing PE multiple of 19.6x and the S&P 500 was trading at 23.2x. As most Verizon’s revenue comes from the United States, it may not be affected much by tariffs or a trade war. In the next part of this series, we’ll analyze Goldman Sachs’s views on CVS Health.


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