Verizon (VZ) Stock Forecast & Price Target

Verizon Communications demonstrated a modest increase in net sales revenue of 0.61% year-over-year, rising from $133.97 billion to $134.79 billion for the 12 months ending December 2024, alongside a 2.2% increase in consumer revenue for the fourth quarter driven by service revenue growth. The company's return on capital improved significantly from 6.06% to 7.61% over the last twelve months, indicating enhanced operational efficiency and profitability. Furthermore, Verizon's economic profit surged by 63.87% year-over-year, signifying robust financial health and the capacity to support an increasing dividend payout ratio, which is positioned to elevate shareholder returns in the future.

Verizon Communications has reported a decline in Economic Operating Cash Flow (EBITDAR) of 3.77% year-over-year, dropping from $51.16 billion to $49.23 billion, reflecting pressures on its revenue outlook primarily due to the integration challenges of TracFone and a weakened consumer postpaid offering. Additionally, the company carries significant total unsecured debt of $117.9 billion, with a leverage ratio of 2.3 times, which heightens financial risk amid increasing competition and potential regulatory changes. The firm also faces operational uncertainties, including the risk of unforeseen events that could adversely affect its business performance, potentially hindering its ability to meet investment objectives.