Stock analysis · Bull Rankings model

VZ analysis

Verizon Communications Inc.Telecom Services. Scored on the same transparent model behind the daily rankings.

VZ
Verizon Communications Inc. · Telecom Services
FCF$21.8bA
Rev+1.4%C
D/E1.84C
P/E12.9xB+
PEG0.93B+
55.4Score
$49.45$205.5B
1Y Target$51.56Analyst consensus · 23 analysts
5Y Target$65.09Compound horizon
10Y Target$83.47Long-dated conviction
FCF$21.8bTTM
A
FCF $21.8b — top-tier cash generation, rarefied air
Rev+1.4%TTM YoY
C
Revenue +1.4% — flat, mature phase or headwinds present
D/E1.84
C
D/E 1.84 — more levered than most Communication Services peers (≈90th pctile)
P/E12.9x
B+
P/E 12.9 — below the Communication Services median (≈40th pctile)
PEG0.93
B+
PEG 0.93 — near fair value, classic Lynch benchmark (1.0)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 55.4
Quality71.1
Growth51.7
Value46.4
Entry · Margin of safety
52-week rangeNear 52-week high
4% off the 12-month high
vs DCF fair value39% belowest. fair value ~$82
What the price assumes: free cash flow compounding at ~-8% a year for the next decade — vs the ~5% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability28% · Bgross profit ÷ total assets (Novy-Marx)
ROIC10.6% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Telecom Services · market cap $205.5b. 4% off the 52-week high of $51.68. PEG 0.93 — paying under fair value for the growth rate. 23 sell-side analysts publish a mean 1-yr target of $51.56 (implying +4% upside).
Moat
ROE 16% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 131% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined. $205.5b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate.
Risk
Dividend payout 73% of earnings on a 5.7% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.
Horizon
1-3 yr $51.56 (23-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $65.09 at ~6% CAGR — dividend + buyback compounding. 10 yr $83.47 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

VZ vs the Top Picks average

PillarVZBook avgDiff
Quality0.710.84-0.13
Growth0.520.84-0.32
Value0.460.78-0.32

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-4.5 over 47 daily scores
From 59.9 (Jun 22) → 55.4 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.3%
90-day change+0.1%
Forward EPS estimate$5.28

Over the last 90 days, what analysts expect VZ to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
40
Position size
$1,978
4.0% of portfolio
Stop price
$37.09
25% below $49.45
$ at risk if stopped
$494.50
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Verizon Communications Inc. (VZ): score, valuation & FAQ

Verizon Communications Inc. (VZ) is a Telecom Services company that scores 55.4 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are FCF (A), P/E (B+) and PEG (B+). On valuation, VZ sits about 39% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade.

Is VZ a good stock to buy?

Bull Rankings scores VZ 55.4 out of 100 on its quality-growth model, which is a middling reading. That is driven by FCF (A), P/E (B+) and PEG (B+). A score is a quantitative screen of Verizon Communications Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does VZ score 55.4 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). VZ earns its highest marks on FCF (A), P/E (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is VZ overvalued or undervalued?

Based on $49.45, VZ sits about 39% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade. It trades at a 12.9x P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in VZ?

Dividend payout 73% of earnings on a 5.7% yield — distribution coverage is thin; one earnings stumble could force a dividend cut.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

More Telecom stocks by score

All Communication Services rankings →

Analyze another ticker →