Verizon Has Gone Back into the Unlimited Data Business, Potentially Boosting Sales

As the cell phone industry continues to grow in competitiveness, Verizon has been a leader among them. Cell phones are now being used more as a computer than a phone, which puts cell phone companies in a great position to succeed. However, with the changing technology, Verizon has to be able to adjust. They demonstrated this with the addition of the unlimited data after facing pressure from their competition to do so. Only time will tell what the next pressure point will be. Now, let us take a look at the most recent numbers and see how the short term health of the company is.

Published over a year ago
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Reviewed by Raphi Shpitalnik

Taking a look at a recent 8-K report, we can gather the following numbers. $1.10 in earnings per share and adjusted earnings per share of 86 cents, excluding non-operational items related to mark-to-market pension and benefits adjustments and severance-related costs. The report states that the company is being positioned for future growth and to sustain shareholder value. These are encouraging words for current and potential investors because you don’t want to invest in a stagnant company that can no longer develop.

Now, taking a look at the chart using the monthly time frame, we can see that price has been really stable staying in a nice range, which is not the worst. What would be a worrying sight is drastic movements in stock price often because that means investors aren’t sure on where price should be. Overall, the chart looks healthy, but you want to use that chart with the fundamental data to formulate a well rounded opinion. From the words of the report and the chart, it seems safe that you could proceed with confidence in your research.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Verizon Communications income statement, its balance sheet, and the statement of cash flows. Potential Verizon Communications investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Verizon Communications investors may use each financial statement separately, they are all related. The changes in Verizon Communications's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Verizon Communications's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Verizon Communications fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Verizon Communications performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Verizon Communications shares is the value that is considered the true value of the share. If the intrinsic value of Verizon is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Verizon Communications. Please read more on our fundamental analysis page.

Are Verizon Communications Earnings Expected to grow?

The future earnings power of Verizon Communications involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Verizon Communications factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Verizon Communications stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Verizon expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Verizon Communications earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Verizon Communications dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Verizon one year expected dividend income is about USD1.74 per share.
Investing in dividend-paying stocks, such as Verizon Communications is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Verizon Communications must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Verizon Communications. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Breaking down Verizon Communications Indicators

Risks

Some of the risks that are aligned with this company can be found on the company’s most recent 10-K report. For now, here are a couple to keep in mind while completing your research. First, the ever changing technology sector will keep a company like this on their feet. If they are unable to adjust, that could be a sign the company has other issues. Secondly, they have to remain competitive with their competition because it can be easy for someone to switch over to a less expensive alternative. They have lessened this risk with the addition of endless data, which is a step in the right direction.

Conclusion

This wireless company is going to be around for the near future, but that doesn’t mean it will generate returns on your investments. Be sure to compare them against the others and decide if it’s a good fit for your portfolio. If you still have questions, consult and investing professional and they can help point you in the right direction. Again, Verizon is a sound company but you should still dig deep into the numbers.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Verizon Communications. Please refer to our Terms of Use for any information regarding our disclosure principles.

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