VZ Stock - is Verizon's Stock a Good Buy Today - $VZ | Summary and Q&A

TL;DR

Verizon's wireless segment is the main driver of revenue, while the wireline segment has been shrinking. Net income has improved due to lower operating costs and capital expenditures. Valuing the stock using discounted cash flow and price to earnings ratios suggest a fair value range of $65-$73 per share.

Key Insights

• 🪛 Verizon's wireless segment is the primary driver of revenue, while the wireline segment has been in decline.
• 😘 Net income has improved despite revenue struggles, indicating lower operating costs and better margins.
• 🧡 Valuing Verizon stock using discounted cash flow suggests a fair value range of $65-$73 per share.
• 😀 The future potential of 5G technology could propel Verizon's growth and stock performance.
• 💄 Verizon's dividend yield of 4% makes it a favorable choice for a dividend portfolio.
• 🥺 The potential success of 5G technology could lead to extended growth for Verizon's revenue and profits.
• 😀 Analysts expect 5G to be a driver of growth for the company.

Transcript

Hi I'm Jimmy in this video I'm going to walk from my analysis of Verizon Communications ticker symbol VZ. This is a twenty seventh video in our series where we're analyzing all 30 stocks in the Dow Jones industrial average. We then get to take that analysis. We're going to build three different portfolios a dividend a value and a growth portfolio. ... Read More

Questions & Answers

Q: How is Verizon's business divided between wireless and wireline segments?

Verizon's wireless segment accounts for 76% of revenue, while the wireline segment accounts for the remaining 24%.

Q: Why has Verizon been focusing on its wireline fiber-based network?

The wireline segment has been shrinking, but Verizon sees potential in its fiber-based network under the Fios brand.

Q: What has been the trend in revenue for Verizon's wireless segment?

Revenue for the wireless segment had been increasing for some time, with a temporary dip in 2016 and 2017 before a jump in 2018.

Q: Why has Verizon's net income improved?

Net income has improved due to lower operating costs and capital expenditures, which has resulted in better net income margins.

Summary & Key Takeaways

• Verizon's business is divided into wireless and wireline segments, with wireless accounting for 76% of revenue in 2018.

• The wireline segment has been shrinking, and Verizon has focused on its fiber-based network under the Fios brand.

• Revenue for the wireless segment has shown growth, with a slight dip in 2016 and 2017 before a jump in 2018.

• Net income has improved due to lower operating costs and capital expenditures.