Buy or Sell Verizon Stock? Here is a chart showing what earnings on VZ stock
Verizon connections (Viz) competitors AT&T (T) and T-Mobile US (TMUS) in 2024 as well as the S&P 500. Verizon stock still attracts income-oriented investors, thanks to its dividend. But the development story for VZ stock remains.
Amid major leadership changes, the company is focused on growing wireless revenue, free cash flow and earnings before interest, taxes, depreciation and amortization.
Additionally, VZ’s stock retreated to 3% in 2025. Verizon’s earnings are January 24th. Wall Street analysts expect the company to issue 2025 guidance.
For the December quarter, analysts were projecting EPS of $1.09, up 1%, on revenue of $35.3 billion, up 1%. Verizon is expected to add 350,000 postpaid phone subscribers, including “second line” accounts.
Investors in AT&T stock are bullish on “bundling” — selling standard broadband and wireless services in product bundles.
Border detection on the track
Agreed to buy Verizon in September Border communication (FYBR) for $20 billion in cash. In November, Frontier shareholders approved the proposed merger.
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Frontier is the largest supplier of pure play fiber in the US, expected to exceed 10 million homes by the end of 2026. The company currently has 2.2 million fiber network subscribers in 25 states.
What’s more, Verizon has raised its wireless access subscriber goal to 8 million to 9 million by the end of 2028. That’s 4 million to 5 million 5G fixed broadband customers by the end of 2025.
Meanwhile, Apple (APL) sales of iPhone 16 models could be a major factor in 2025. iPhone 16 models will feature “Apple Intelligence,” artificial intelligence applications.
Verizon stock basics
Rising interest rates and Treasury bills are headwinds for stocks to pay dividends. In addition, Verizon’s share buyback has been delayed by purchases of radio spectrum needed for 5G wireless services.
New York-based Verizon may be in a tough spot as the wireless industry slows amid competition from AT&T and T-Mobile, as well as cable TV companies. The Verizon brand has also lost some oomph as the company struggles to regain market demand for operating a high-quality wireless network.
However, the rollout for 5G integrations is taking longer than expected. Verizon owns the mid-band and high-frequency millimeter wave radio spectrum.
Verizon’s consumer wireless business has yet to see a material revenue pickup from 5G smartphone users. Also, revenues from 5G commercial services using private networks have disappointed.
VZ stock: no 5G booster
Overall, income growth remains an issue. Data-driven mobile video hasn’t emerged as a big moneymaker. Verizon has focused on upgrading consumers to unlimited data plans to increase average monthly revenue per user.
Verizon expects to accelerate commercial 5G services using private network links by 2025. It will also invest in “mobile edge computing” sites.
Verizon has partnered with Amazon’s Web Services cloud computing arm. Amazon (AMZN) to develop 5G applications for web-connected industrial devices. The other is a partner. IBM (IBM).
Moreover, researchers expect 5G to play a role in wireless manufacturing automation, cloud gaming, autonomous vehicles, drones, and remote healthcare services.
Adjusted earnings beat views as Verizon reported mixed third-quarter results and revenue came in slightly below Wall Street targets.
In one bright spot, Verizon said it added 363,000 fixed wireless broadband customers in Q3. As of September 30, it had 4.2 million fixed wireless broadband customers.
Verizon Stock: Is It a Buy Now?
Buying Verizon stock depends on fundamental and technical factors, as well as each investor’s goals, strategy and risk tolerance.
In addition, Verizon’s stock ranks only among 99 of the top 25 relative strength rankings. IBD Stock Check. The best stocks will have RS ratings of 80 or higher.
Additionally, VZ stock has an IBD Composite Rating of 43 out of 99. It is a mix of key fundamental and technical metrics that help investors gauge a stock’s strength. The best growth stocks have a composite rating of 90 or higher.
Meanwhile, Verizon stock maintains a D-minus stock/distribution rating. This level analyzes price and price changes over the past 13 trading weeks. The ratings, on a scale of A+ to E, measure institutional buying and selling in a stock. A+ indicates strong institutional buy; E stands for hard sell. Think of the C level as neutral.
Since January 21, Verizon stock has been trading below its 50-day moving average, a bearish sign. VZ stock does not have an entry point and is not in a buy zone. It needs to establish a foundation for it to be implemented.
Plus, check out IBD’s stock lists and other IBD content for dozens of great stocks to buy or watch.
Investors can also sign up. Email alerts about earnings and other news from Verizon Investor Relations.
Follow Reinhardt Krause on Twitter @reinhardtk_tech For updates on 5G wireless, artificial intelligence, cyber security and cloud computing.
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