Verizon Rises 9.5% YTD, Should You Invest in VZ Stock Now?

Verizon Communications Inc. (VZ) has gained 9.5% YTD, underperforming the Wireless National industry and the S&P 500. The company has underperformed peers AT&T (T) and T-Mobile (TMUS). Verizon's customer-focused approach and fiber expansion efforts have contributed to its growth. However, the company faces stiff competition from major industry leaders and must navigate challenges such as densifying its 4G LTE wireless network and expanding 5G mmWave in new and existing markets.

Verizon Communications Inc. (VZ) has experienced a 9.5% year-to-date (YTD) gain, though this performance trails the Wireless National industry’s growth of 15.9% and the S&P 500. The company has underperformed peers such as AT&T Inc. (T) and T-Mobile US, Inc. (TMUS), with the latter two achieving returns of 27.7% and 15.9% respectively [1]. Despite these figures, Verizon's customer-focused approach and fiber expansion efforts have driven growth.

Verizon's customer-centric strategy includes offering mix-and-match pricing plans and introducing the Verizon Family Plus plan, which provides digital wellness and safety tools for family members. The company also launched Tracfone Freedom, an unlimited talk, text, and data plan at $45 per month with Auto-pay, offering 5G access and international connectivity [1].

Verizon is aggressively expanding its fiber optics networks to support 4G LTE and 5G wireless standards. The company recently secured FCC approval for its acquisition of Frontier Communications, enhancing its fiber infrastructure footprint nationwide. Additionally, Verizon is making significant capital expenditures for 5G mmWave expansion and 4G LTE network densification [1].

However, Verizon faces stiff competition from AT&T and T-Mobile, which are rolling out enticing plans tailored to specific customer demographics. The company's heavy spending on promotions and discounts to acquire and retain customers is likely to strain margins. Macroeconomic challenges also impact net sales in its Business segment [1].

Verizon has recently filed a mixed securities shelf registration with the SEC, signaling its intention to raise capital through debt and equity securities. This move supports the company's ongoing expansion and innovation efforts, particularly in the realm of 6G technology and connectivity services [2]. The registration allows Verizon to issue up to $10 billion in new securities, with the debt portion providing liquidity for growth initiatives and the equity component helping maintain competitive edge [2].

Verizon's strong financial performance, with a 5.2% increase in total revenue and a 6% growth in adjusted EPS in the second quarter of 2025, underscores its robust operational performance. The company's free cash flow has shown a modest increase of 3.5% over the first six months of 2025 [2].

In conclusion, while Verizon faces challenges such as competition and macroeconomic pressures, its strategic moves and strong financial performance position it for continued growth. Investors should consider these factors when evaluating the company's stock.

References:
[1] https://www.nasdaq.com/articles/verizon-rises-95-year-date-should-you-invest-vz-stock-now
[2] https://www.ainvest.com/news/verizon-communications-files-mixed-securities-shelf-2508/