VZ Should I Buy
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Verizon Communications Inc (VZ) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the stock offers a high dividend yield of approximately 6% and has seen positive analyst sentiment with raised price targets, the financial performance in the latest quarter shows significant declines in net income and EPS. Additionally, hedge funds are selling, and Congress trading data indicates caution. The technical indicators suggest the stock is overbought, and there is no strong proprietary trading signal to justify immediate action.
The MACD is positive at 0.647, indicating bullish momentum, but it is contracting. The RSI is at 84.002, signaling the stock is overbought. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its resistance level (R1: 49.58).
High dividend yield of approximately 6%, attractive for long-term investors.
Positive analyst sentiment with multiple raised price targets and buy ratings.
Strong Q4 postpaid phone additions and a $25B share buyback plan.
Significant declines in net income (-53.21% YoY) and EPS (-53.39% YoY) in Q4
Hedge funds are selling the stock, with a 510.89% increase in selling activity last quarter.
Congress trading data shows a recent sale transaction, indicating caution.
The stock is overbought based on RSI, suggesting limited short-term upside.
In Q4 2025, revenue increased by 1.96% YoY to $36.38B. However, net income dropped by 53.21% YoY to $2.34B, and EPS declined by 53.39% YoY to $0.55. Gross margin also fell by 3.65% YoY to 42.81%.
Analysts have generally raised price targets, with JPMorgan, Citi, and TD Cowen issuing buy ratings and targets ranging from $48 to $54. Analysts cite strong Q4 performance, cost-cutting measures, and a $25B share buyback plan as positives. However, some firms maintain neutral ratings, citing concerns over churn and competition.
