Down 6% in 2021, Is Now the Time to Scoop Up Shares of This Telecom Company?

This telecom giant is down more than 6% through the first eight months of the year. The stock is currently trading near the 52-week low of $53.83. So, is it now time for investors to buy?…

Founded in Delaware in 1983, Verizon (VZ – Get Rating) is now headquartered in New York City. VZ’s FiOS internet and TV service are certainly quite popular where available. VZ provides reliable content delivery service including its rapidly expanding mobile video segment. However, VZ clearly commits the cardinal sin of business which is leaving money on the table. Millions of individuals living in the United States and beyond are more than willing to pay for VZ internet and cable yet do not have access to the company’s service.

Is VZ poised for a bounce-back after struggling in the initial financial quarters of the year? Or is VZ likely to stagnate moving forward? Let’s find out.

VZ Points of Note

As one of the three top wireless carriers in the United States, VZ is beloved by everyday people and businesses alike. VZ has displayed solid year-over-year growth across the initial quarters of the year. Consolidated operating revenue jumped from 4% in the first quarter of the year to 11% in the following quarter.

VZ’s revenue has spiked on a year-over-year basis in its media, business, and consumer segments by 10%, 1%, and 5%, respectively. Aggregate companywide wireless revenue increased 6% in the second quarter of ’21 compared to that of the same quarter in ’20.

Z has a relatively low forward P/E ratio of 10.43. This ratio indicates the stock is underpriced at around $55 per share. VZ is also intriguing as it is likely to hold the majority of its value should there be a market correction. This is evidenced by VZ’s beta being a mere 0.48.

VZ is held in high regard by plenty of investors as it pays an attractive dividend. VZ’s current dividend payment is an enticing 4.53%.

V’s price returns are largely negative of late. The stock had price returns in the green from ’16 to ’19 yet VZ entered the red in ’20 and is also in the red in the context of price returns through the first eight months of the year. VZ has a year-to-date price return of -3.28%. The stock’s ’20 price return was -0.13%.

The analysts believe VZ is headed higher. The average analyst price target for VZ is…

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