When
AT&T was ordered to relinquish control of the Bell foundation, numerous
smaller companies were formed, one of which was Verizon. Founded in 1983 and
headquartered in New York City, Verizon is a broadband and telecommunication
service provider that trades on the New York stock exchange under the stock symbol VZ. With an industry
leading market cap and stock share price ($194.87 billion and $47.07
respectively), it comes as no surprise that Verizon’s stock is
being regarded as a “buy”. Despite recent drops in stock share prices of all
telecommunication service providers, Verizon’s situation seems more propitious.
This is alluded to by Verizon’s diverse portfolio of services and frequent
displays of eco-responsibility.
Only
last month Verizon collaborated with Cornell university engineers to develop a
more environmentally-friendly and efficient method of regulating temperature at
a cell site, planning to move away from traditional air conditioning. This,
amongst other projects, is a part of Verizon’s 2010 “Verizon foundation
initiative”. This helps present VZ as a dynamic and forward thinking company
that is pro-diversification and pro-portfolio enhancement. This helps garner
considerably favorable investor interest in VZ stock shares. When talking statistics, Verizon has a gross
profit margin of 61.49% (increased from the same quarter last year) and a net
profit margin of 16.31% (industry leading NPM). In 2013 it was announced that
Verizon would attain complete corporate autonomy when it purchased the
remaining stake owned by Vodafone in Verizon
Wireless.
Looking
at VZ stock graph statistics it is apparent that the company isn’t on its way
to elevated stock share prices as of this moment, however,
judging by past trends this downward slope is considered only temporary. Some
may even go as far as stating that this may be the perfect time to buy into
Verizon, evidenced by low VZ stock share
prices and expectations of stock appreciation in the near future. From a
macro perspective Verizon’s stock chart
has seen positive upward movement of roughly 66% since early 2010 with the
stock currently sitting at $47.07 a share. Things don’t look as conducing if
one is to consider VZ’s short term performance, however. Even though Verizon
has managed to roll out timely and regular updates to all its leading phones
(the recent android 4.4 update for the HTC One, for example) and has also, of
late, won accolades for having the highest quality network across all six
geographic locations of the US. Investor interest in Verizon stock may have also declined due to the allegations raised
in the media regarding telecommunication service providers sending private user
data to the NSA. Although Verizon has largely been able to stay out of the
public eye during this ordeal, its name has still been associated with the
infamous “operation Boundless Informant”, the United States government’s covert
agenda to track its population’s private data as a proactive sort of defense
against potential terrorist threats.
However,
Verizon currently exhibits acute potential to become a high value stock as soon
as the quarter comes to a close due to the company’s revenue growth, solid net
profits, good cash flow and positive returns on equity.
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