Should I buy Verizon shares in November 2021?

Verizon Communications Inc. (NYSE: VZ) shares remain under pressure even though the company’s business has proven improvements throughout the third fiscal quarter and expects to see even better trends in the upcoming quarter.

Verizon increased its profit forecast

Verizon’s business has proven improvements throughout the third fiscal quarter, and the company reported strong results in October. Total revenue has increased by 4.4% Y/Y to $32.9 billion, while the third quarter GAAP EPS was $1.55 (beats by $0.20).

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Verizon Communications increased its profit forecast for the full fiscal year during the third-quarter earnings call, and the consistent strong execution should drive healthy growth in the last quarter of the 2021 year.

The company’s management expects adjusted EPS of $5.35 to $5.40, while total wireless service revenue for the full 2021 fiscal year should increase around 4 percent. This reflects a combination of strong net additions in wireless and broadband as well as the company’s ongoing efforts to continue to invest in long-term growth.

Verizon continues to work with suppliers to ensure adequate equipment for devices that its customers want, and it is important to mention that over 25% of its consumer phone base is using a 5G-capable device.

This is tracking well ahead of the 4G adoption, and Verizon is doing more gigabit of usage in a month now than it did in all the first quarter. Verizon continues to add wireless subscribers while Hans Vestberg, Chairman and Chief Executive Officer, said:

Our operational excellence and our partnership strategy are the best in the industry, which I’ve been so impressed by since I joined Verizon. We continue to provide the best-in-class experience across the board.

Verizon began the fourth quarter in a strong position and continues to improve its business for long-term growth and advantage. According to the latest news, Verizon has signed a deal with UK health tech company Visionable to build connected healthcare infrastructure for the Middle East, Africa, Europe, and the Asia Pacific regions.

Fundamentally looking, Verizon Communications trades at less than five times TTM EBITDA, and with a market capitalization of $217 billion, shares of this company are not expensive.

Verizon’s 4.8% dividend looks safe; the board of directors is taking action to increase profitability and remain very optimistic about the upcoming quarters in terms of growth.

$50 represents the strong support

Verizon shares continue to trade near 2021 lows, and if the price falls below $50 support, the next target could be $45.

On the other side, if the price jumps above $55 resistance, it would signal trading shares, and the next target could be at $58 or even above.

Summary

Verizon Communications shares remain under pressure even though the company’s management increased its profit forecast for the full fiscal year. Verizon’s 4.8% dividend looks safe; the board of directors is taking action to increase profitability, and with a market capitalization of $217 billion, shares of this company are not expensive.

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