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Verizon is deeply undervalued due to overblown fears of SpaceX entering the cellular market, creating a compelling long-term income opportunity. SpaceX's technological and capital hurdles make it unlikely to pose a near-term existential threat to VZ, which remains entrenched with superior 5G capabilities. VZ delivers robust financials: single-digit P/E, 6.4% yield, double-digit FCF growth, and a $25B buyback, all while comfortably managing its $165B debt.
Verizon (VZ) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
T-Mobile (NASDAQ:TMUS | TMUS Price Prediction) stock is up 3% to $152.65 in afternoon trading, recovering part of the worst one-day loss in its history as a public company. Meanwhile, Verizon (NYSE:VZ) stock is up 2% to $42.
SpaceX just handed Verizon its worst single-day drop since 2002, yet one Wall Street firm sees the selloff as an opportunity that could reward patient investors far more than the broader market consensus suggests.
Verizon fell roughly 10% after SpaceX's spectrum deal, but approximately 1.5 percentage points reflected the ex-dividend adjustment. SpaceX gains up to 14 MHz of low-band spectrum, improving Starlink Mobile's coverage while leaving meaningful capacity constraints unresolved. Verizon added 184,000 postpaid phone and 348,000 broadband connections in Q2 as subscriber economics continued improving.
In the most recent trading session, Verizon Communications (VZ) closed at $46.35, indicating a +1.27% shift from the previous trading day.
Verizon's improving customer trends, broadband growth and AI infrastructure opportunity support gains, but competition and debt remain key risks.
Verizon (VZ) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Verizon's stock has cooled sharply after a strong year, yet two fresh growth catalysts are quietly stacking up behind a 6% yield that already pays you to wait.
I'm rating Verizon Communications a Buy with a $57 price target, implying 24% upside from current levels. Lower churn, broadband expansion, Frontier, and AI Connect should drive the next leg of earnings growth. VZ trades at only 9.49x FWD non-GAAP earnings, nearly 28% below the sector median of 13.16x.
Verizon Communications (VZ) concluded the recent trading session at $48.33, signifying a -2.87% move from its prior day's close.