Verizon Communications (VZ) Stock Performance and Earnings Estimates: A Closer Look

Verizon Communications (VZ) has returned -2.2% over the past month, underperforming the Zacks S&P 500 composite's +5% change. Earnings estimates for the current quarter, fiscal year, and next fiscal year have been revised with a year-over-year change of +2.6%, +2%, and +4.7%, respectively. The Zacks Rank, which harnesses the power of earnings estimate revisions, is a Hold, indicating a neutral near-term price performance.

Verizon Communications Inc. (VZ), a leading provider of communications, technology, information, and entertainment products and services, has seen its stock return -2.2% over the past month, underperforming the Zacks S&P 500 composite's +5% change [3]. The company operates in two segments: Verizon Consumer Group (Consumer) and Verizon Business Group (Business), catering to consumers, businesses, and governmental entities worldwide [1].

Earnings estimates for the current quarter, fiscal year, and next fiscal year have been revised, showing a year-over-year change of +2.6%, +2%, and +4.7%, respectively [3]. The Zacks Rank, which harnesses the power of earnings estimate revisions, is a Hold, indicating a neutral near-term price performance [3]. Verizon Communications is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025 [3].

Verizon Communications recently declared a quarterly dividend, which will be paid on Friday, August 1st. Shareholders of record on Thursday, July 10th will be paid a dividend of $0.6775 per share, representing a $2.71 dividend on an annualized basis and a yield of 6.51% [2]. The company's dividend payout ratio (DPR) is presently 64.52% [2].

Institutional investors have shown interest in Verizon Communications, with several hedge funds increasing their stakes in the company. Concord Asset Management LLC VA increased its holdings by 36.8% during the first quarter, owning 27,939 shares after acquiring an additional 7,521 shares [2]. Other notable investors include BridgePort Financial Solutions LLC, Meyer Handelman Co., Rempart Asset Management Inc., Treasurer of the State of North Carolina, and Welch Group LLC [2].

Analysts have provided a range of ratings and target prices for Verizon Communications. Royal Bank Of Canada has a "sector perform" rating and a $45.00 price target [2]. Morgan Stanley initiated coverage with an "equal weight" rating and a $47.00 target price [2]. Bank of America set a "neutral" rating and a $45.00 target price [2]. Oppenheimer and Tigress Financial have given the stock an "outperform" and "buy" rating, respectively [2]. Eleven research analysts have rated the stock with a hold rating, seven have issued a buy rating, and three have given a strong buy rating to the company [2].

Verizon Communications' stock performance has been stable, with a fifty-day moving average of $43.10 and a 200-day moving average of $42.41. The company has a market capitalization of $175.42 billion, a P/E ratio of 9.91, a P/E/G ratio of 3.34, and a beta of 0.37. The company has a quick ratio of 0.58, a current ratio of 0.61, and a debt-to-equity ratio of 1.19 [2].

Verizon Communications reported $1.19 earnings per share for the quarter ended April 22, 2025, beating the consensus estimate of $1.15 by $0.04. The company had revenue of $33.50 billion during the quarter, compared to analyst estimates of $33.31 billion. Verizon Communications had a net margin of 13.14% and a return on equity of 19.66% [2].

In conclusion, Verizon Communications has shown mixed performance over the past month, with earnings estimates and institutional interest suggesting a potential turnaround. The company's dividend and stable stock performance make it an attractive option for investors seeking a balanced portfolio.

References:
[1] https://sg.finance.yahoo.com/quote/VZ/
[2] https://www.marketbeat.com/instant-alerts/filing-concord-asset-management-llc-va-acquires-7521-shares-of-verizon-communications-inc-nysevz-2025-07-15/
[3] https://finance.yahoo.com/news/verizon-communications-vz-earnings-expected-140001744.html