Key Stats for Verizon Stock
- Last 30-Day Performance: 26%
- 52-Week Range: $38 to $50
- Valuation Model Target Price: $60
- Implied Upside: 23%
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What Happened?
Verizon Communications Inc. stock rose about 26% in the last 30 days, recently trading near $49 per share as investors reacted to strong fourth quarter results and a more confident 2026 outlook.
The rally followed confirmation of more than 1 million mobility and broadband net adds in Q4, including 616,000 postpaid phone net adds, which CEO Dan Schulman called “our highest postpaid phone net adds in the last 5 years.”
The stock moved higher because management guided to accelerating earnings and free cash flow growth in 2026, signaling that the company’s turnaround strategy is gaining traction.
Verizon reported full-year 2025 adjusted EBITDA of $50 billion, adjusted EPS of $4.71, and free cash flow of $20.1 billion, while guiding for 750,000 to 1 million postpaid phone net adds in 2026, 2% to 3% mobility and broadband service revenue growth to about $93 billion, adjusted EPS of $4.90 to $4.95, and free cash flow of $21.5 billion or more.
Investors also responded to the closing of the Frontier acquisition on January 20 and management’s decision to raise its fiber ambition to 40 million to 50 million passings over the medium term.
The company reinforced confidence by increasing its annual dividend by 2.5% and authorizing a new $25 billion share repurchase program.
Institutional filings showed selective portfolio adjustments in Q3. Vanguard increased its stake by 0.3% to 373,904,749 shares, representing about 8.87% ownership worth roughly $16.43 billion, while the State of New Jersey Common Pension Fund D lifted its position by 4.6% to 1,458,784 shares valued at about $64.1 million.
Other firms trimmed exposure, reflecting portfolio rebalancing rather than broad institutional selling pressure.
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Is Verizon 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 reflects steady low single-digit expansion as Verizon shifts toward volume-driven subscriber growth rather than price increases.
Management is targeting 750,000 to 1 million postpaid phone net adds in 2026, roughly 2 to 3 times 2025 levels, supported by churn reduction initiatives and improved customer experience.
Fiber expansion remains a central driver. With a goal of reaching 40 million to 50 million fiber passings over time, Verizon gains meaningful cross-sell opportunities in underpenetrated wireless markets.
Bundled mobility and broadband customers exhibit lower churn, strengthening lifetime value and improving operating leverage.
Margin durability is supported by $5 billion in planned operating expense savings in 2026 and capital expenditures guided to $16 billion to $16.5 billion as C-Band buildout nears completion.
Free cash flow is expected to reach $21.5 billion or more in 2026, marking the strongest level since 2020 and supporting both dividend growth and share repurchases.
Based on these inputs, the model estimates a target price of $60, implying about 23% total upside over roughly 2.9 years, indicating the stock appears undervalued at current levels.
Results over the next year hinge on execution across several higher-impact areas. Subscriber growth, churn reduction, fiber penetration in Frontier markets, and disciplined cost control will determine whether Verizon can translate operational momentum into sustained earnings acceleration.
At current levels, Verizon appears undervalued, with future performance driven by improving subscriber trends, expanding fiber assets, margin discipline, and durable free cash flow rather than aggressive top-line acceleration.
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