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VZ Shares Rise 8.6% in Six Months: What's the Next Move for Investors?
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Key Takeaways
Verizon posted its first positive first-quarter postpaid phone net additions since 2013.
Verizon added 341,000 broadband subscribers and expects 32M fiber passings by year-end.
VZ faces intense competition, rising debt and integration risks tied to the Frontier acquisition.
Verizon Communications Inc. (VZ - Free Report) has gained 8.6% in six months against the Wireless National industry’s decline of 3.8%. The stock has underperformed the Zacks Computer & Technology sector during this period.
Image Source: Zacks Investment Research
The company has outperformed its peers like AT&T Inc. (T - Free Report) and Charter Communications, Inc. (CHTR - Free Report) . Shares of AT&T have declined 8.4%, while Charter has declined 37% during this period.
Key Growth Drivers for VZ
Verizon is benefiting from strong wireless subscriber additions. The company reported its first positive first-quarter postpaid phone net additions since 2013. This was possible due to lower churn and improved customer satisfaction. The company’s disciplined customer acquisition strategy is focused on enhancing customer values, improving service quality and reliability. Moreover, its convergence strategy is also paying off well. By combining mobility, fiber, and fixed wireless services under one unified offering, Verizon is improving customer retention. When customers get dependent on multiple services from a single vendor, it becomes difficult for them to change service providers. From a user’s point of view, opting for fiber and wireless services from a single vendor reduces complexity for them as well.
The company has launched a company-wide transformation program focused on becoming an AI-first organization. The program is focused on automation, AI-enabled customer interactions, digital sales channels, micro-segmentation, and process simplification. The company expects these efforts to reduce operating costs and enhance user experience. Verizon targets achieving $5 billion in operating expense savings and improving profitability. AI integration across operations supports that initiative.
Verizon continues to invest in network excellence, fiber infrastructure, and advanced cybersecurity capabilities. This is evident by its participation in Anthropic's Project Glasswing. The company is aiming to strengthen its cybersecurity capabilities using advanced artificial intelligence.
Broadband remains a major growth engine. Verizon added 341,000 broadband subscribers in the first quarter. This includes both Fixed Wireless Access and Fiber customers. The company continues to expand its fiber footprint and expects to exceed 32 million fiber passings by year-end.
Major Challenges
U.S. wireless industry remains highly competitive. It faces competition from AT&T, Charter, T-Mobile in each of its served market. This is forcing telecom companies to spend heavily on customer acquisition and retention. Verizon still needs to take necessary steps to defend its customer base. Although the company has reduced its spend on promotional activities, heavily discounted offers from rivals can still impact its subscriber growth.
Verizon is aggressively expanding its fiber footprint and fixed wireless business. Although these initiatives support long-term growth, they require significant capital investment. This will likely put pressure on free cash flow in the near term.
The Frontier acquisition expands the fiber footprint but increases leverage and adds integration complexity that can constrain flexibility if operating conditions deteriorate. At the end of first-quarter 2026, Verizon’s total unsecured debt was $142.5 billion compared with $131.1 billion at the end of the fourth quarter of 2025, and net unsecured debt was $130.1 billion compared with $110.1 billion. Its high debt burden makes it vulnerable to growing macro uncertainty. Weak consumer spending or business investment could affect wireless upgrades, broadband demand and hinder VZ’s revenue growth.
Estimate Revision Trend of VZ
VZ’s earnings estimates for 2026 have increased over the past 60 days, while for 2027, they have declined.
Image Source: Zacks Investment Research
Key Valuation Metric of VZ
From a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry and its mean. Going by the price/earnings ratio, the company’s shares currently trade at 8.82, lower than 11.33 for the industry.
Image Source: Zacks Investment Research
End Note
Verizon’s long-term strategy remains anchored in scaling 5G and broadband together, which supports customer stickiness when mobility and home connectivity are bundled under one provider. Focus on AI-driven transformation and cost efficiency are positive factors. Collaboration with Anthropic in the project Glasswing to improve cybersecurity capabilities is a tailwind. However, intense competition and macroeconomic challenges remain major concerns. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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VZ Shares Rise 8.6% in Six Months: What's the Next Move for Investors?
Key Takeaways
Verizon Communications Inc. (VZ - Free Report) has gained 8.6% in six months against the Wireless National industry’s decline of 3.8%. The stock has underperformed the Zacks Computer & Technology sector during this period.
Image Source: Zacks Investment Research
The company has outperformed its peers like AT&T Inc. (T - Free Report) and Charter Communications, Inc. (CHTR - Free Report) . Shares of AT&T have declined 8.4%, while Charter has declined 37% during this period.
Key Growth Drivers for VZ
Verizon is benefiting from strong wireless subscriber additions. The company reported its first positive first-quarter postpaid phone net additions since 2013. This was possible due to lower churn and improved customer satisfaction. The company’s disciplined customer acquisition strategy is focused on enhancing customer values, improving service quality and reliability. Moreover, its convergence strategy is also paying off well. By combining mobility, fiber, and fixed wireless services under one unified offering, Verizon is improving customer retention. When customers get dependent on multiple services from a single vendor, it becomes difficult for them to change service providers. From a user’s point of view, opting for fiber and wireless services from a single vendor reduces complexity for them as well.
The company has launched a company-wide transformation program focused on becoming an AI-first organization. The program is focused on automation, AI-enabled customer interactions, digital sales channels, micro-segmentation, and process simplification. The company expects these efforts to reduce operating costs and enhance user experience. Verizon targets achieving $5 billion in operating expense savings and improving profitability. AI integration across operations supports that initiative.
Verizon continues to invest in network excellence, fiber infrastructure, and advanced cybersecurity capabilities. This is evident by its participation in Anthropic's Project Glasswing. The company is aiming to strengthen its cybersecurity capabilities using advanced artificial intelligence.
Broadband remains a major growth engine. Verizon added 341,000 broadband subscribers in the first quarter. This includes both Fixed Wireless Access and Fiber customers. The company continues to expand its fiber footprint and expects to exceed 32 million fiber passings by year-end.
Major Challenges
U.S. wireless industry remains highly competitive. It faces competition from AT&T, Charter, T-Mobile in each of its served market. This is forcing telecom companies to spend heavily on customer acquisition and retention. Verizon still needs to take necessary steps to defend its customer base. Although the company has reduced its spend on promotional activities, heavily discounted offers from rivals can still impact its subscriber growth.
Verizon is aggressively expanding its fiber footprint and fixed wireless business. Although these initiatives support long-term growth, they require significant capital investment. This will likely put pressure on free cash flow in the near term.
The Frontier acquisition expands the fiber footprint but increases leverage and adds integration complexity that can constrain flexibility if operating conditions deteriorate. At the end of first-quarter 2026, Verizon’s total unsecured debt was $142.5 billion compared with $131.1 billion at the end of the fourth quarter of 2025, and net unsecured debt was $130.1 billion compared with $110.1 billion. Its high debt burden makes it vulnerable to growing macro uncertainty. Weak consumer spending or business investment could affect wireless upgrades, broadband demand and hinder VZ’s revenue growth.
Estimate Revision Trend of VZ
VZ’s earnings estimates for 2026 have increased over the past 60 days, while for 2027, they have declined.
Image Source: Zacks Investment Research
Key Valuation Metric of VZ
From a valuation standpoint, VZ appears to be trading relatively cheaper compared to the industry and its mean. Going by the price/earnings ratio, the company’s shares currently trade at 8.82, lower than 11.33 for the industry.
Image Source: Zacks Investment Research
End Note
Verizon’s long-term strategy remains anchored in scaling 5G and broadband together, which supports customer stickiness when mobility and home connectivity are bundled under one provider. Focus on AI-driven transformation and cost efficiency are positive factors. Collaboration with Anthropic in the project Glasswing to improve cybersecurity capabilities is a tailwind. However, intense competition and macroeconomic challenges remain major concerns. With a Zacks Rank #3 (Hold), VZ appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.