On Monday, Verizon Communications Inc. (NYSE:VZ) shares edged lower 2% after Barclays analysts tweaked the price target to $55 from $56, maintaining an equal weight rating. Analyst Kannan Venkateshwar cited a model adjustment to cover expenses and the closing of the Yahoo deal for the new PT.
The analyst also lowered the AT&T Inc. (NYSE:T) price target to $30 from $34, citing challenging technicals, a telecoms update note to investors. T shares plunged 2.6% following the update.
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Venkateshwar VZ price target still implies a 6% upside potential, based on the stock price of about $52.20 as of this writing. The analysts expect the stock to trade in a sideways pattern formation until a new revenue source kicks in.
Is Verizon a good buy in Q4 2021?
From a valuation perspective at an attractive trailing 12-month P/E of 11.03 and forward P/E of 9.96, making the stock a compelling option for value investors.
Moreover, analysts expect its earnings per share to grow by an average annual rate of 3.63% over the next five years compared to an average annual decline of 0.5% in the previous five.
Therefore, Verizon seems to offer a better earnings growth potential for the foreseeable future at exciting valuation multiples.
Watch out for a rebound?
Technically, Verizon shares appear to have recently made a downward breakout from a descending channel formation. As a result, the stock plummeted to the oversold conditions of the 14-day RSI.
Therefore, with shares several levels below the 100-day moving average, a rebound seems inevitable. As a result, investors could target profits at approximately $54.03, or higher at $55.43. On the other hand, if the decline continues, Verizon shares could find support at $50.74, or lower at $49.15.
VZ looks like a good short-term buy
In summary, Verizon shares have plummeted to a new 18-month low of about $52.20, pushing the stock oversold conditions.
Therefore, given the company’s exciting valuation multiples, the stock could experience a short-term rebound before pulling back. Thus, it could be a good time to buy VZ shares.
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