2024-03-25 08:30:31 ET
Summary
- Verizon's long-term recovery remains constructive, with VZ surging higher and revisiting levels seen in July 2022.
- Verizon's consumer wireless segment is expected to perform well in 2024, barring an economic recession.
- Verizon's CapEx cadence has likely bottomed out, sustaining improved free cash flow generation.
- I explain why VZ's rally seems far from over, supported by a cheap valuation and attractive forward dividend yield.
- With VZ consolidating at the $40 level, buyers should consider buying before it potentially surges higher.
I encouraged Verizon Communications Inc. ( VZ ) investors in December 2023 to continue holding on to their shares even as I downgraded VZ to a Hold after it delivered a sharp recovery. I assessed that the long-term recovery in VZ seems to remain constructive, although I preferred a more attractive entry point. VZ has continued to surge higher, slightly trailing the S&P 500 ( SPX ) ( SPY ) since my December update. However, I believe VZ investors who hung on to their positions are likely satisfied, as it last revisited levels seen in July 2022. As a result, I think it is clear why investors who leveled bearish bets on VZ at its late 2023 lows have likely realized their mistakes as VZ reached peak pessimism....
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Verizon: The Turnaround Seems Far From Over (Rating Upgrade)