"Secular pressure, pension dilution and valuation limit upside potential in the near term," Bank of America Merrill Lynch analysts wrote in a June 4 report. "Downside risk is mitigated, in our view, by the relative stability of core businesses and the healthy dividend. The consumer wireline business is in a state of decline due to wireless substitution and cable competition. We view the dividend as secure. However, incremental returns to shareholders may be delayed."
Shares of Verizon hit a 52-week high on Monday of $42.85. The stock's 52-week low of $32.28 was set on Aug. 9.
Verizon's forward P/E is 18.95 times; the average for its peers is 24.36. For comparison, AT&T(T) has a lower forward P/E of 15.63.
Twenty-one of the 37 analysts who cover Verizon rated it hold. Fifteen analysts gave the stock a buy rating and one rated it sell.
The stock has risen 6.78% year to date.