Verizon Communications Stock Outlook: Is Wall Street Bullish or Bearish?
With a market cap of $182.6 billion, Verizon Communications Inc. (VZ) is a leading global provider of communications, technology, and entertainment products and services through its Consumer and Business segments. The company offers wireless, broadband, and fiber-optic solutions and has strengthened its position through strategic mergers, technological innovation, and service diversification.
Shares of the New York-based company have slightly outperformed the broader market over the past 52 weeks. VZ has risen 12.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12%. In addition, shares of VZ are up 9.5% on a YTD basis, outpacing SPX’s 3.5% decline.
However, the largest U.S. cellphone carrier has lagged behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) 22.3% gain over the past 52 weeks.
Shares of Verizon recovered marginally on Apr. 22 due to investor optimism stemming from the company’s reaffirmation of its annual adjusted profit and free cash flow outlook. The company posted Q1 2025 adjusted EPS of $1.19 and revenue of $33.5 billion, exceeding analyst expectations, and reported a 2.7% rise in wireless service revenue to $20.8 billion, driven by earlier price increases. While Verizon lost 289,000 postpaid wireless subscribers, the company highlighted strong momentum in late March and April, with nearly double-digit growth in customer activity following the launch of its three-year price guarantee.
For the fiscal year ending in December 2025, analysts expect VZ’s adjusted EPS to grow 2.2% year-over-year to $4.69. The company's earnings surprise history is promising. It consistently surpassed consensus estimates in the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, two “Moderate Buys,” and 15 “Holds.”
On Apr. 8, Scotiabank analysts reaffirmed their “Sector Perform” rating on Verizon Communications and slightly raised the stock's price target to $48.50.
As of writing, VZ is trading below the mean price target of $46.99. The Street-high price target of $56 implies a potential upside of 28.2% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.