Verizon Stocks: A Jewel in your Portfolio

admin   January 26, 2016   Comments Off on Verizon Stocks: A Jewel in your Portfolio

Verizon Wireless, that is generally referred as Verizon is a leading name in the world of Wireless services. The Company’s headquarters are in Basking Ridge, New Jersey. It was originally started as a joint venture of Bell Atlantic and Vodafone, A British Telecommunication Company.

The company is a well managed company that has strong fundamentals. It is well managed company with a very positive image. Though the PayTv Industry went through a negative phase in 2015, the company started going ahead with strong positive results adding even more clients. It shows the Company’s business intelligence, a positive mentality and also the management skills of top managers.

So here is a quick study and some tips on Verizon Stocks .

The Year 2015 was a good year for Verizon. The consolidated revenue grew by 3.3% in quarter. The figure is calculated after adjusting for the AOL purchase and selling Company’s public Sector business. Full Revenue Growth is expected at about 3.3%.

When Pay Television Industry as a whole got thinner by as many as 650,000 subscribers, Verizon not only succeeded in maintaining its client base but also registered a growth in the number of the clients in its pay PayPayTvPayTV segment. Through three quarters FIOS major growth: 57,000 (Q1), 26,000 (Q2) and 42,000 (Q3) which shows the company’s strategic growth plan in the sector of Pay TV and also promises that he sector is not going to register a negative rate any time soon. However around the mid of the year 2016 it is doubted that he numbers could be encouraging looking at the current market scenario.

Some Quick Facts:

  • Over a year, the company registered a growth of 4.3% in its retail wireless connections as per the third quarter’s records.
  • Another major growth was seen in the company’s FIOS Internet (+7.2%) and Pay-television business (+5%) that is a positive sign.
  • Steady Revenue Growth of the Company shows the company’s fundamental strength. Besides the business acumen is expressed by its higher profit margins.

Advice for Investors

  • Going by the above factors, Verizon will make a good buy. The company has seen a good growth, is treading on the right track and has a promising future.
  • It is recommended that instead o buying in bulk quantity one can also go for systematic investment plan buying at certain intervals.
  • One can get a good gain over a period of 2-5 years.
  • As the PayTv Industry, as a whole, is going through a negative phase there are possibilities that company might not be able to maintain its steady growth and may see major declines 2016. However, this opportunity can be used to buy the company’s stocks in a good quantity with a target of selling them after 3-5 years.
  • The fact that Company was able to register growth despite of the not-so-positive environment of the industry (as per last year) shows that Company is really apt at managing the negative situations and strategically going ahead avoiding the negatives. That also makes it a good buy for a long term too.