Verizon
VZ
$43.59
-0.66%
Verizon Communications is a leading telecommunications provider offering wireless services, fixed-line broadband, and enterprise connectivity solutions across the United States. As the largest US wireless carrier by subscriber count, it serves approximately 94 million postpaid and 20 million prepaid customers, with wireless accounting for 75% of service revenue and nearly all operating income. The current investor narrative centers on Verizon's restructuring efforts—including store sales and job cuts—to improve efficiency, while its removal from the Dow Jones Industrial Average in June 2026 has sparked debate about the stock's long-term relevance, though its strong dividend and low valuation continue to attract income-oriented investors.…
VZ
Verizon
$43.59
Related headlines
VZ 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Verizon's 12-month outlook, with a consensus price target around $51.25 and implied upside of +17.6% versus the current price.
Average Target
$51.25
0 analysts
Implied Upside
+17.6%
vs. current price
Analyst Count
—
covering this stock
Price Range
$43 - $71
Analyst target range
Verizon is covered by 23 analysts, with a consensus recommendation of 'buy' and a mean recommendation score of 2.27 (where 1 is strong buy and 5 is sell). The average target price is $51.25, implying approximately 17.6% upside from the current price of $43.59. The distribution shows a bullish tilt, with recent ratings from Scotiabank (Sector Outperform), Citigroup (Buy), and Daiwa Capital (Buy) reinforcing positive sentiment. The target price range spans from a low of $43.00 to a high of $71.00, indicating significant dispersion in analyst expectations. The high target of $71.00 assumes a substantial recovery and multiple expansion, likely driven by successful restructuring and margin improvement. The low target of $43.00, just below the current price, suggests downside risk if growth disappoints or competitive pressures intensify. The wide spread of $28.00 (65% of the average target) reflects high uncertainty about Verizon's future performance, though the consensus remains moderately bullish.
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Bulls vs Bears: VZ Investment Factors
Verizon presents a classic value versus growth debate. On the bull side, the stock offers a compelling 6.67% dividend yield, a P/E of 10.0x—a 55% discount to the industry average—and solid profitability with a 14.6% net margin. Analyst consensus is a buy with 17.6% upside to the average target. On the bear side, revenue growth is anemic at 2.9% YoY, the company carries high debt (D/E 1.92), and the stock has underperformed the market significantly. The single most important tension is whether Verizon's low valuation and high dividend can compensate for its lack of growth and competitive pressures. Currently, the bull case has stronger evidence given the attractive yield and valuation, but the bear case highlights real risks that could cap upside.
Bullish
- Attractive Dividend Yield: Verizon offers a dividend yield of 6.67%, which is significantly higher than the S&P 500 average. This provides a strong income stream for investors, supported by a payout ratio of 66.9% and trailing free cash flow of $20.05 billion.
- Low Valuation Relative to Peers: The trailing P/E ratio of 10.0x is well below the industry average of 22x, representing a 55% discount. The forward P/E of 8.3x suggests further earnings growth, making the stock appear undervalued.
- Solid Profitability and Cash Flow: Verizon's net margin of 14.6% and operating margin of 23.9% demonstrate efficient operations. Free cash flow of $20.05 billion TTM provides ample coverage for dividends and capital expenditures.
- Analyst Consensus Buy: With 23 analysts covering the stock, the consensus rating is 'buy' and the average target price of $51.25 implies 17.6% upside from the current price of $43.59. Recent upgrades from Scotiabank and Citigroup reinforce positive sentiment.
Bearish
- Modest Revenue Growth: Revenue grew only 2.9% year-over-year in Q1 2026 to $34.44 billion, and the multi-quarter trend shows lumpy, flat growth. This mature industry offers limited expansion potential, capping upside for growth-oriented investors.
- High Debt Levels: The debt-to-equity ratio of 1.92 indicates significant leverage, common for telecoms but still a risk. Interest expense of $1.94 billion in Q1 2026 consumes a notable portion of operating income, reducing financial flexibility.
- Recent Dow Jones Removal: Verizon was removed from the Dow Jones Industrial Average in June 2026, which may signal waning relevance and could lead to passive selling by index funds. This event adds uncertainty to the stock's long-term perception.
- Underperformance vs Market: Over the past year, Verizon's price return of +6.4% lags the S&P 500's +18.4%. Relative strength over 3 months is -11.0%, indicating persistent underperformance and negative momentum.
VZ Technical Analysis
Verizon's 1-year price change of +6.4% reflects a modest uptrend, but the stock has pulled back sharply from its 52-week high of $51.68, currently trading at $43.59—approximately 84% of the 52-week range. This positioning near the lower end of the range suggests a potential value opportunity, though the recent decline from the highs indicates waning momentum and possible near-term weakness. The stock's beta of 0.24 implies significantly lower volatility than the broader market, making it a defensive holding but also limiting upside participation in rallies. Over the past 1 month, Verizon has declined 4.9%, while the 3-month change shows a steeper drop of 6.4%, indicating accelerating short-term selling pressure. This negative momentum contrasts with the positive 1-year return, suggesting a potential trend reversal or a temporary pullback within a longer-term uptrend. The relative strength versus the S&P 500 is notably weak, with 1-month and 3-month relative strength readings of -5.2% and -11.0%, respectively, confirming that Verizon is underperforming the market significantly. The 52-week low of $38.39 provides a key support level, while the 52-week high of $51.68 represents major resistance. A breakdown below $38.39 could signal further downside toward the next support, while a breakout above $51.68 would indicate a resumption of the uptrend. With a beta of 0.24, Verizon is 76% less volatile than the S&P 500, making it a low-risk holding but also less responsive to market rallies.
Beta
0.24
0.24x market volatility
Max Drawdown
-18.3%
Largest decline past year
52-Week Range
$38-$52
Price range past year
Annual Return
+6.4%
Cumulative gain past year
| Period | VZ Return | S&P 500 |
|---|---|---|
| 1m | -4.9% | -0.5% |
| 3m | -6.4% | +4.9% |
| 6m | +12.0% | +9.7% |
| 1y | +6.4% | +18.4% |
| ytd | +7.6% | +9.0% |
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VZ Fundamental Analysis
Verizon's revenue trajectory shows modest growth, with Q1 2026 revenue of $34.44 billion representing a 2.9% year-over-year increase from $33.49 billion in Q1 2025. However, the multi-quarter trend reveals deceleration: Q2 2025 revenue was $34.50 billion, Q3 2025 was $33.82 billion, and Q4 2025 was $36.38 billion, indicating lumpy but generally flat growth. The Consumer Group segment generated $26.45 billion in Q1 2026, while the Business Group contributed $7.42 billion, highlighting the dominance of consumer wireless. The modest growth rate suggests a mature industry with limited expansion potential, which weighs on the investment case for growth-oriented investors. Verizon is profitable, with Q1 2026 net income of $5.05 billion and a net margin of 14.6%. Gross margin stood at 60.3%, while operating margin was 23.9%, reflecting solid profitability. Compared to the prior year, net margin improved from 14.6% in Q1 2025 to 14.6% in Q1 2026, showing stability. However, the Q4 2025 net margin was only 6.4% due to elevated costs, indicating some quarterly volatility. The company's margins are typical for the telecom industry, which benefits from high operating leverage but faces heavy infrastructure costs. Verizon's balance sheet shows a debt-to-equity ratio of 1.92, indicating significant leverage, which is common for capital-intensive telecoms. Free cash flow for the trailing twelve months was $20.05 billion, providing ample coverage for dividends and capex. The current ratio of 0.91 suggests tight liquidity, but strong operating cash flow of $7.98 billion in Q1 2026 supports ongoing investments. Return on equity (ROE) of 16.4% is healthy, reflecting efficient use of shareholder capital despite the high debt load.
Quarterly Revenue
$34.4B
2026-03
Revenue YoY Growth
+2.9%
YoY Comparison
Gross Margin
60.3%
Latest Quarter
Free Cash Flow
$20.1B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is VZ Overvalued?
Since Verizon has positive net income, the trailing P/E ratio of 10.0x is the primary valuation metric. The forward P/E of 8.3x implies that earnings are expected to grow, and the gap between trailing and forward suggests the market is pricing in modest earnings expansion. The stock's P/E of 10.0x is well below the industry average of 22x (based on sector data), representing a 55% discount. This discount may be justified by Verizon's low growth profile and high debt levels, but it also suggests potential value if the company can stabilize or improve its earnings trajectory. The P/S ratio of 1.25x further confirms a cheap valuation relative to sales. Historically, Verizon's trailing P/E has ranged from roughly 6x to 12x over the past five years, with the current 10.0x near the middle of that range. This suggests the stock is neither excessively cheap nor expensive by its own historical standards. The current P/E is below the 5-year average of approximately 11x, indicating a slight discount to its own history, which could appeal to value investors but also reflects the market's tempered growth expectations.
PE
10.0x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 6x~12x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
7.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: Verizon's high debt-to-equity ratio of 1.92 and interest expense of $1.94 billion in Q1 2026 pose financial risk, especially if interest rates remain elevated. The current ratio of 0.91 indicates tight liquidity, though strong operating cash flow of $7.98 billion in Q1 2026 provides a buffer. Revenue growth is sluggish at 2.9% YoY, and the company's reliance on wireless services (75% of revenue) creates concentration risk. Any disruption in the wireless market could significantly impact earnings.
Market & Competitive Risks: The stock's beta of 0.24 suggests low market correlation, but its removal from the Dow Jones Industrial Average in June 2026 could lead to index fund selling and reduced visibility. Competitive pressures from T-Mobile and AT&T, along with the need for continuous infrastructure investment (capex), may pressure margins. The stock's trailing P/E of 10.0x, while low, reflects market skepticism about growth prospects. Macro risks include potential recession impacting consumer spending on telecom services.
Worst-Case Scenario: If Verizon fails to execute its restructuring, revenue growth stalls, and competitive pressures intensify, the stock could fall to its 52-week low of $38.39, representing a 11.9% decline from the current price of $43.59. In a severe recession with dividend cuts, the stock could drop further, potentially testing the $35 level, implying a 19.7% loss. The analyst low target of $43.00 already suggests limited downside, but a break below that could accelerate selling.
