Verizon's 6.5% Outperformance as 171st-Ranked Stock Balances 5G Investments and Fiber Expansion

On August 11, 2025, Verizon (VZ) traded with a 0.07% gain on $560 million in volume, ranking 171st in market activity. The stock has risen 6.5% over six months, outperforming the Wireless National industry’s 2.3% growth and the S&P 500. Key drivers include 2.2% year-over-year growth in wireless service revenue to $20.9 billion and a 25.2% rise in wireless equipment sales to $6.3 billion. Broadband additions totaled 293,000 for Fios and 278,000 for fixed wireless access, while the Frontier Communications acquisition is projected to add 2.2 million fiber customers across 25 states.

Strategic partnerships, such as the Staples collaboration to expand retail kiosks, aim to enhance brand visibility and target small business customers. However, challenges persist, including high capital expenditures for 5G spectrum and fiber infrastructure. The C-Band auction and Intelligent Edge Network upgrades have strained short-term returns, while competitive pressures from AT&T and Charter Communications threaten market share gains. Fios Video lost 62,000 net subscribers in Q2 2025, signaling subscriber retention risks.

Valuation metrics show VZ trading at a forward P/E of 8.91, below the industry average of 13.48. Earnings estimates for 2025 and 2026 rose 0.21% and 1.44%, respectively, reflecting improved investor confidence. Despite favorable tax reforms and free cash flow growth, rising customer acquisition costs and promotional discounts are compressing margins. Competitors like AT&T and Charter are accelerating fiber expansions, with Charter investing $7 billion in infrastructure and AT&T acquiring Lumen’s fiber business for $5.75 billion.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the influence of liquidity concentration on short-term performance, particularly in volatile markets, as high-volume stocks experience amplified price movements due to investor activity and market dynamics.