Verizon Communications (NYSE: VZ) reports its Q2 2021 earnings next week. The stock price trades with a bid tone ahead of the release and may reach a new high on positive news.
Verizon’s stock price is holding just below its October 1999 highs. The company releases its Q2 2021 earnings next Wednesday, July 21st, and investors expect EPS to grow by 9.56% YoY.
The consolidation, just below the previous high, has been a long time coming. Its stock price has only risen by 5.86% over the past five years, while the overall market performed much better.
However, this is a dividend-paying company with a great dividend growth history. Verizon pays a quarterly dividend with a five-year growth rate of 2.12% and a yield of 4.46%. Therefore, investors missing on growth have compensated by reinvesting the dividends while the company’s share price held steady.
Verizon Stock Price – A Bullish Perspective
Despite the long-term consolidation, the stock price still offers a bullish perspective. The consolidation, which started in December 2018, looks like an ascending triangle pattern.
Such a pattern indicates the continuation of the previous bullish trend, and technical traders wait for the price to close above horizontal resistance.
What Are Q2 2021 Earnings Expectations?
Investors expect an EPS of $1.29 for the last quarter and $133.74 billion in revenue. Verizon has beaten the EPS expectations in the previous four quarters, and so the sentiment is that it will do so again.
Wall Street expects earnings growth and forward guidance regarding the impact of the recent team up with Mastercard to enhance the payments ecosystem.
What Do Analysts Say About Verizon Stock Price?
Seventeen analysts covering the Verizon stock price are optimistic, with none giving a sell rating. Most of them are neutral (i.e. eleven), while the rest issued buy ratings.
Verizon trades at a P/E Non-GAAP TTM ratio of 11.38, lower than the 20.06 sector median. Its operating cash flow growth YoY is 13.73% and it has a gross profit margin of 59.53%.