Let’s take a look at Verizon Communications Inc. (NYSE:VZ), who is known for operating America’s largest and most reliable wireless voice and 3G networks.
Verizon released its fourth-quarter earnings last week. Now that we’ve had a few days to digest the news, let’s take a closer look at VZ stock, and see if it’s a good time to buy shares.
Verizon – Company Profile
If you live in the U.S., chances are you have heard of the massive rivalry between Verizon and AT&T Inc. (NYSE:T) However, many don’t remember or realize that Verizon started as an AT&T spinoff in 1984.
Fast forward almost three decades later, and Verizon has emerged as a global force in the broadband and telecommunications industry. Verizon has diversified into a number of telecommunications services, including land line telephone and internet services, as well as one of the most advanced wireless networks on the planet.
Verizon – Earnings Rundown
As I mentioned earlier, Verizon released its Q4 earnings report last week. Verizon met analysts’ expectations despite fourth-quarter losses.
Verizon reported adjusted earnings of 71 cents per share, up from 66 cents per share last year. Analysts’ expected earnings of 72 cents per share. Verizon also reported a loss of $2.15 billion or 54 cents per share compared to a gain of $7.62 billion or $1.76 per share the previous year.
Verizon still managed to increase revenue by nearly 7% to $33.19 billion from $31.07 billion the previous year. Looking ahead, Verizon expects consolidated revenue growth of at least 4%.
Verizon – Current Ratings
For several months, VZ has remained in “hold” territory and that trend doesn’t seem to changing any time soon.
Verizon stock does earn As on two of the metrics I graded it on (operating margin growth and return on equity) and a solid B-grade for cash flow. However, VZ stock fails in earnings momentum and earns dismal D-grades for sales growth, earnings surprises and analyst earnings revisions.
Meanwhile, all other metrics earn lackluster C-grades. So, Verizon receives a C for its Fundamental Grade. Institutional buying pressure of VZ stock is mediocre, and VZ stock earns a C for its Quantitative Grade.
As of this posting, I consider Verizon a C-rated “hold.”
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
