Key Stats for VZ Stock
- Year-To-Date Performance: 25%
- 52-Week Range: $38 to $52
- Valuation Model Target Price: $60
- Implied Upside: 19%
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What Happened?
Verizon Communications Inc. is benefiting from a broader re-rating in telecom stocks in 2026 as investors rotate toward stable, cash flow-driven businesses with high dividend yields, with the company emerging as a key beneficiary alongside peers like AT&T and T-Mobile, although Verizon is increasingly viewed as a more defensive, income-focused play compared to T-Mobile’s stronger subscriber growth.
Verizon stock is up about 25% year to date in 2026, recently trading near $51 per share, primarily because investors are gaining confidence that the company can expand margins and stabilize earnings through $5 billion in cost reductions, lower capital intensity, and growth in broadband services, while its roughly 5% to 6% dividend yield continues to attract income-focused investors seeking predictable returns.
At a recent investor conference, Verizon highlighted a sharper financial and operating reset under its transformation plan, including $5 billion of cost reductions, about $4 billion of capital savings, and 2026 guidance for 750,000 to 1 million retail postpaid net adds, 2% to 3% service revenue growth, 4% to 5% adjusted EPS growth, and at least $21.5 billion of free cash flow, with CFO Anthony Skiadas stating the company is “creating a new Verizon” as it pushes to improve churn, expand broadband, and integrate Frontier.
Institutional activity has remained active, with Wealth Enhancement Advisory Services increasing its stake by 7.4% to over 2.1 million shares, Value Partners Investments raising its position by 24.3%, and Wilsey Asset Management initiating a roughly $37 million position, while Nordea Investment Management trimmed its stake by 16.6%, reflecting portfolio rebalancing rather than broad-based selling, with overall institutional ownership remaining high at about 62%.
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Is VZ Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 2.2%
- Operating Margins: 24.2%
- Exit P/E Multiple: 8.6x
Revenue growth is expected to remain modest, but the mix is improving as fiber and fixed wireless access expand.
Fiber broadband delivers high-speed internet directly to homes and businesses, while fixed wireless uses Verizon’s wireless network to provide home internet, both of which generate more stable and recurring revenue compared to traditional wireless services.
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Margin expansion is the primary driver of earnings growth, with operating margins projected to improve from about 21% to 24% as the company executes on $5 billion of cost reductions, reduces capital intensity, and shifts toward higher-margin broadband services.
Compared to peers like AT&T and T-Mobile, Verizon is not expected to lead in subscriber growth, but it is increasingly positioned as a cash flow-driven business where returns are supported by efficiency gains, pricing discipline, and consistent capital allocation.
Based on these inputs, the model estimates a target price of $60, implying about 19% total upside over roughly 3 years, suggesting the stock appears modestly undervalued at current levels.
Performance in 2026 will be driven by continued broadband expansion, improving customer retention as churn declines, and the ability to sustain strong free cash flow while maintaining its dividend and capital return strategy.
How Much Upside Does VZ Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
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