Telecom giant Verizon (VZ) is set to release second-quarter 2024 earnings on July 22. Analysts are expecting earnings per share to come in at $1.15 versus $1.21 per share reported in the prior-year period. Meanwhile, analysts expect revenues of 33 billion, reflecting a 1.4% year-over-year increase, according to TipRanks’ data.
Interestingly, Verizon has a decent earnings surprise history. The company exceeded earnings estimates in seven out of the previous 10 quarters.
According to TipRanks’ Bulls Say, Bears Say tool, bullish analysts believe that Verizon is expected to continue benefiting from significant 5G adoption and fixed broadband growth. However, bearish analysts expect a slowdown in postpaid phone growth and increasing wireless competition to negatively impact the company’s results.
Insights from Options Trading Activity
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 3.85% move in either direction.
Is VZ a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Verizon stock based on seven Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 32% gain in its share price over the past year, the average VZ price target of $45.96 per share implies about 9% upside potential.
