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Verizon (VZ) After Earnings: Cheap Stock or Value Trap?
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The stock still trades at a discount to peers, under 9.5 times forward earnings versus roughly 13x for the group.
EPS growth is now guided to 6-7%, and free cash flow growth guidance got bumped to 9-10% from 7% previously.
That’s a meaningful acceleration from the low single-digit free cash flow growth Verizon posted the last few years.
Free cash flow payout ratio sits under half of what the company generates, and the roughly 6% yield comes with a multi-year streak of annual hikes.
Total debt keeps climbing, and net debt jumped close to 20% year over year.