In this article, we discuss the 5 stocks to buy before their earnings reports. If you want to read about some stocks with upcoming growth catalysts, go directly to 10 Stocks to Buy Before Their Earnings Reports.
5. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 63
Earnings Due On: April 22
Verizon Communications Inc. (NYSE:VZ) markets technology, information, and entertainment products. The company has signaled that it is ready to push for labor retention in a tricky market as it recently announced that it had boosted the minimum wage for a large number of employees to $20 per hour. Verizon announced that it was offering premium pay differentials for managers who work on holidays. The firm is expanding partnerships with key firms in the 5G sector as well, evidenced by the investment in communications equipment firm Casa Systems.
In late January, Deutsche Bank analyst Bryan Kraft maintained a Hold rating on Verizon Communications Inc. (NYSE:VZ) stock but raised the price target to $59 from $57, predicting an 8% upside in the shares in 2022.
At the end of the fourth quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in Verizon Communications Inc. (NYSE:VZ), compared to 57 in the previous quarter worth $10.3 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like telecom (Verizon). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”