Verizon saw strong growth in wireless subscribers and revenue, with undervalued stock performance

From Nasdaq: 2025-02-03 04:05:00

Verizon Communications (NYSE: VZ) saw strong subscriber growth in Q4, boosting stock performance. Despite a year of trading lower, its forward dividend yield of 6.7% is attractive. Wireless revenue rose 3.1%, with 568,000 postpaid net additions. Broadband added 408,000 subscribers, but prepaid business faced challenges. Business revenue slipped 1.5% to $7.5 billion.

Verizon’s total revenue increased 1.6% to $35.7 billion, with adjusted EPS at $1.10. It forecasts 2025 wireless revenue growth of 2-2.8% and adjusted EBITDA growth of 2-3.5%. Introduction of Verizon AI Connect for businesses. Dividend well-covered, leverage ratio at 2.3.

With a forward P/E ratio of 8.3, Verizon looks undervalued compared to AT&T at nearly 11 times. Verizon’s stock has underperformed despite strong operational performance. Investors prefer AT&T for share buybacks and dividend growth. Verizon remains a better buy based on performance and valuation.

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Read more at Nasdaq: Verizon Is Benefiting From Strong Wireless Growth. Is Now the Time to Buy the Stock?