Introducing Valuation Models! 
Key Takeaways:
- Analysts expect Verizon to increase revenue by 2.8% and earnings by 3.4% YoY in Q2 of 2025.
- The telecom giant is accelerating its fiber expansion and driving convergence with its pending Frontier acquisition.
- Our valuation model predicts that VZ stock will deliver 7.4% annualized returns over the next 2.4 years.
Verizon (VZ) is scheduled to report its second-quarter results today before the market opens.
Analysts covering VZ stock expect revenue to rise by 2.80% year over year to $33.71 billion while earnings are forecast to expand by 3.40% to $1.19 per share.
The telecommunications leader has demonstrated consistent execution amid competitive pressures, positioning itself for sustained growth through strategic network investments and broadband expansion.
Verizon has beaten revenue estimates in two of the last four quarters and earnings estimates in four of the last five quarters.
See analysts’ growth forecasts and price targets for any stock (It’s free!) >>>
A Focus on Verizon’s Convergence Strategy
Verizon has demonstrated strong momentum in its transformation from a traditional wireless carrier to a converged communications provider, creating multiple avenues for sustainable growth.
The company’s strategic focus on convergence is yielding tangible results, with 16% of its customer base now having both mobile and broadband services.
Management expects this figure to double over the next three years, driven by superior customer retention and reduced churn rates.
The pending $20 billion Frontier acquisition is expected to significantly accelerate Verizon’s fiber expansion capabilities.
Combined with organic growth, Verizon plans to reach 40 million fiber homes, while covering an additional 100 million homes through fixed wireless access (FWA).
This positions the telecom giant as the only carrier capable of providing nationwide broadband coverage through owned infrastructure.
Verizon’s FWA business continues exceeding expectations, as it is on track to reach its 8-9 million subscriber target by 2028.
The service consistently maintains strong customer satisfaction, achieving NPS scores in the mid-30s, while generating substantial margins with no dedicated capital expenditure requirements.
Verizon’s disciplined approach to convergence focuses on demand-led bundling rather than aggressive discounting.
Customers who purchase both fiber and wireless services exhibit 40-50% lower churn rates, while maintaining healthy profit margins through minimal promotional pricing.
Management’s segmented growth strategy across eight wireless brands enables effective market coverage from value-conscious prepaid customers to premium postpaid segments.
The prepaid business has gained market share for three consecutive quarters, while the adjacency business, including perks and services, has grown to a $2 billion run rate with mid-30% margins.
Build your own Valuation Model to value any stock (It’s free!) >>>
Is VZ Stock a Buy Before Its Q2 Earnings?
Our valuation model estimates that Verizon will maintain steady revenue growth, benefiting from operational leverage and convergence synergies throughout the forecast period.
The model projects VZ stock to appreciate from its current price of $40.84 to a target price of $48.67, representing a potential total return of 19.2% over the next 2.4 years.
This translates to an annualized return expectation of 7.4% (including dividends), indicating that Verizon offers attractive, risk-adjusted returns for income-focused investors seeking exposure to the telecommunications sector.
In the past decade, VZ stock has returned 44% to shareholders after adjusting for dividend reinvestments.
Verizon’s strong free cash flow generation supports its 18-year streak of dividend growth, while maintaining financial flexibility for strategic investments, including the integration of Frontier and continued network expansion.
FAQs
1. Is Verizon Stock a Buy, Hold, or Sell?
Of the 29 analysts covering Verizon stock, 13 recommend “Buy”, 14 recommend “Hold”, and two recommend “Sell”.
2. Who is the largest shareholder of Verizon stock?
The Vanguard Group is the largest shareholder of Verizon stock, owning 8.7% of the total outstanding shares.
3. What is the VZ stock price target?
The average VZ stock price target is $48.45 in July 2025
4. Does VZ stock pay shareholders a dividend?
Yes, VZ stock is expected to pay shareholders an annual dividend of $2.73 per share in 2025, indicating a yield of over 6%.
Value Verizon with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
