Verizon: A Buy Or Sell Opportunity As Earnings, 2025 Guidance Looms

Verizon Communications Inc. (NYSE: VZ) is set to report its fourth-quarter 2024 earnings on January 24, 2025, with analysts expecting earnings per share (EPS) of $1.09. As investors await the results, the question remains: is Verizon stock a buy or sell? To answer this, we must examine Verizon's recent performance, guidance, and analyst sentiment.

Verizon's 2024 financial performance was marked by growth in wireless and broadband segments. The company reported a 2.7% increase in wireless service revenue, driven by pricing actions and growth from fixed wireless connections. Verizon achieved 239,000 postpaid phone net additions and 349,000 total postpaid net additions, with retail postpaid phone churn at 0.89% and retail postpaid churn at 1.16%. The company also achieved 389,000 broadband net additions, with fixed wireless net additions of 363,000, reaching a base of nearly 4.2 million fixed wireless subscribers.

Verizon's 2025 guidance is at or above the midpoint of the guided range for wireless service revenue and adjusted EBITDA, indicating that the company is on track to meet its full-year guidance. Analysts have a moderate buy rating for Verizon stock, with an average target price of $46.07, predicting an increase of 18.80% from the current stock price of $38.78.

However, Verizon faces challenges, such as the ongoing investigation into its lead-sheathed cables network. The Department of Justice (DoJ) and the Environmental Protection Agency (EPA) have moved forward with their investigations, putting pressure on Verizon to accelerate its investigation and provide more clarity. Investors should keep tabs on the developments on the lead cables issue as it unfolds.

Despite these challenges, Verizon's strong financial performance and positive guidance contribute to its favorable stock valuation. The company's strategic initiatives and investments position it well for future growth, which may attract investors and drive up its stock price.

In conclusion, Verizon's 2025 guidance aligns with analyst expectations, and the company's strong financial performance is likely to have a positive impact on its stock price. The positive sentiment from analysts and the company's strategic initiatives position Verizon well for future growth, which may attract investors and drive up its stock price. However, investors should remain vigilant about the ongoing lead cables issue and its potential impact on Verizon's financial performance.