VZ- Verizon Communication Inc.

Just a fair warning to anybody who reads this: this is not any financial advice, but mere speculation coming from a 15-year-old boy from the long-lost lands of Long Island!!!


VZ- Verizon Communication Inc. 

About a month ago, I was investing in some stocks where I could potentially purchase equity, and Verizon (VZ) sparked my interest. This telecommunications company you have most likely heard of operates in the USA and provides its service to over 140 million users. To put this into perspective, that’s half of the USA’s citizens. Imagine in another universe where you become crazily successful and half of your country uses your product. You turn the corner and every block and see that one product that you developed in your mom’s basement through relentless hours is in everyone’s hands. I mean it’s not all sunshine and rainbows; there are of course, hiccups, malfunctions, declines in revenue, etc,  that you have to consider when your product is that worldwide. 

Well, that’s exactly what Verizon, unfortunately, had to come face to face within the early stretch of 2021 until late 2023, when it started to turn back in the right direction. This massive fall off from the peak of $62 down to a mere 30 dollars a share could be associated with the looming economy that was still recovering from the pandemic, which attributed to high interest and not enough great earnings, coupled with a bad string of news, to keep it at the price point it was previously at. So, nevertheless, it plummeted and it plummeted, until a new chapter began.

Verizon started to pick up where it had left off years prior, being one of the strongest and biggest telecommunications companies out there. This was backed up by the influx of hundreds of thousands of new postpaid phone customers, both in quarters 3 and 4. This shows the newfound gain in strength the company has had since the rough patch it’s been dealing with for the past two years. This with the overall market’s recovery has propelled this company from $30 to nearly $42, but this ain’t the end. Analysis from Joseph Bonner, right around the corner on January 23, 2024, declared how he is sure of a buy for this company and predicts a price target of $49. This is primarily due to solid uptake from prepaid customers and an increase in overall revenue, which drives the company’s revenue before EBITDA, as well as the procurement of Tracfone. This wireless service, Tracfone, should do wonders for VZ in the long term. This is a decent buy as of right now and a high-yielding dividend stock at around 6.50%. This percentage has not only been increasing yearly but is not on any sign of stopping. 

Overall, not only the high yield this company has to offer is fantastic, but the track it goes on to see the top once again, in correspondence with an abundance of great news, not just within the company, but with the overall market, makes me lean towards the purchase and holding of this company. 

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