Verizon Communications Stock Falls Behind Nasdaq Amid Q2 Beat

Verizon Communications Inc. (VZ) has dipped 6.6% from its 52-week high and underperformed the Nasdaq Composite's 11.9% return over the past three months. In the longer term, VZ has gained 6.6% over the past 52 weeks, lagging behind NASX's 22.2% uptick. Shares of VZ are up 10.6% YTD, compared to NASX's 11.1% return. Despite recent underperformance, analysts remain moderately optimistic about VZ's prospects with a consensus rating of "Moderate Buy" and a mean price target of $48.35, suggesting a 9.3% premium to its current price levels.

Verizon Communications Inc. (VZ), a leading provider of communications, technology, information, and entertainment products and services, has seen its stock underperform the Nasdaq Composite over the past three months. The company's shares have dipped 6.6% from their 52-week high of $47.36, reached on March 10, 2025. This underperformance comes despite the stock gaining 2.1% over the past three months, which is significantly lower than the Nasdaq Composite's 11.9% return during the same period [1].

In the longer term, Verizon has gained 6.6% over the past 52 weeks, lagging behind the Nasdaq Composite's 22.2% uptick over the same time period. On a year-to-date (YTD) basis, shares of VZ are up 10.6%, compared to the Nasdaq Composite's 11.1% return [1]. Despite this underperformance, the stock has been trading above its 200-day and 50-day moving averages since mid-February and early August, respectively, indicating a bullish trend [1].

Verizon reported better-than-expected Q2 results on July 21, 2025, with service revenues and wireless equipment revenues driving a 5.2% year-over-year increase in overall sales to $34.5 billion. The company's adjusted EPS advanced 6.1% from the year-ago quarter to $1.22, beating Wall Street expectations [1]. This quarterly earnings report led to a 4% surge in the stock price.

Analysts remain moderately optimistic about Verizon's prospects. The stock has a consensus rating of "Moderate Buy" from the 29 analysts covering it, with a mean price target of $48.35, suggesting a 9.3% premium to its current price levels [1]. Corebridge Financial Inc. and several other institutional investors have recently reduced or increased their stakes in VZ, reflecting the ongoing interest in the company's stock [2].

Verizon's market capitalization stands at $187.14 billion, and it has a strong balance sheet with a debt-to-equity ratio of 1.19 and a current ratio of 0.64. The company has set its FY 2025 guidance at 4.636-4.728 EPS and recently announced a quarterly dividend of $0.6775, representing an annualized dividend of $2.71 and a yield of 6.1% [1].

In conclusion, while Verizon Communications Inc. has underperformed the Nasdaq Composite over the past three months, its strong financial performance and analyst optimism suggest that the company's prospects remain promising. Investors should continue to monitor the stock for potential opportunities.

References:

[1] https://www.hi-plainscoop.com/news/story/34520010/is-verizon-communications-stock-underperforming-the-nasdaq
[2] https://www.marketbeat.com/instant-alerts/filing-corebridge-financial-inc-sells-88360-shares-of-verizon-communications-inc-vz-2025-08-25/