Verizon Communications Inc. (VZ), headquartered in New York, is a leading multinational telecom company, focused on wireless services, broadband, and digital media. The company enjoys a strong presence in both consumer and business sectors. Through its varied offerings, Verizon provides innovative solutions in communication, connectivity, and technology. It has a market capitalization of $178.6 billion.
Shares of this leading telecom provider are lagging behind the broader market. Over the past 52 weeks, VZ stock has gained 6.7%, while the broader S&P 500 Index ($SPX) has surged 16.6%. On a year-to-date (YTD) basis, the stock has rallied 6.8%, while the S&P 500 is up by 8.3% in 2025.
The underperformance becomes even more apparent when compared with the SPDR S&P Telecom ETF’s (XTL) gains of 42.2% over the past 52 weeks and 12.2% YTD.
On July 21, Verizon reported its second-quarter results for fiscal 2025. On the same day, its stock jumped by 4%. The telecom company’s revenue amounted to $34.5 billion, up 5.2% year-over-year (YoY) and higher than the Wall Street consensus estimate. At the heart of this growth was the company’s growth in total broadband connections and a growing subscriber base. Verizon reported an EPS of $1.18, up 8.3% YOY.
For the fiscal year 2025, ending in December 2025, Wall Street analysts expect a modest growth in Verizon’s bottom line, forecasting a 2.4% YoY EPS growth to $4.70 on a diluted basis. The company has a history of surpassing consensus estimates, topping them in all of the trailing four quarters.
Wall Street analysts are cautiously optimistic about VZ stock – signaling there’s bullish energy, but it’s not without hesitation. Overall, the stock has a “Moderate Buy” consensus rating. Of the 28 analysts covering the stock, nine are highly bullish, advising a “Strong Buy,” while three have rated it a “Moderate Buy.” The majority, 16 analysts, are playing it safe, recommending a “Hold” rating.
This configuration is slightly bullish than a month ago, when eight analysts suggested a “Strong Buy” rating.
On July 22, JPMorgan raised the price target on VZ from $47 to $49, while maintaining a “Neutral” rating on the stock. Analysts at JPMorgan cited the company’s focus on driving profitability rather than subscriber growth. On the same day, Morgan Stanley analysts also raised the price target from $47 to $48, while keeping their “Equal Weight” rating on the stock.
The consensus price target of $48.17 represents a 12.8% premium over Verizon’s current levels. The Street-high price target of $58 reflects a 35.8% upside potential.
