Major Averages Close Mixed Amid Escalating Geopolitical Tensions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy VZ?
The major averages had a mixed close amid stalled peace negotiations between the U.S. and Iran as well as new escalation in the Strait of Hormuz. Investors are also balancing continued strength in corporate earnings and AI-driven optimism with rising geopolitical tension and macro uncertainty.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Verizonprovided areport for Q1Domino's Pizzareportedand announced an additional $1B share repurchase programShellARC Resourcesfor C$32.80 per shareSun PharmaOrganonfor $14 per share in an all-cash transactionChina has blocked Meta's2. WALL STREET CALLS:Snapto Buy at Rothschild & Co RedburnRothschildPinterestto Neutral from BuyMizuhoAdobeon intensifying competition from AIMizuhoCrowdStrike, citing "numerous exciting growth avenues"Campbell'sto Market Perform at Bernstein3. AROUND THE WEB:Rogers Communicationsis offering voluntary buyouts to half of its staff, Globe and Mail reportsGoogleemployees are urging CEO Sundar Pichai to block military AI use, FT reportsSamsungplans to withdraw from China's home appliance and television market this year, Nikkei Asia reportsBig tech companies are preparing to spend hundreds of billions of dollars on AI infrastructure, with most of their plans dependent on ASML, WSJ saysBayeris hoping the U.S. Supreme Court can reduce or simplify the lawsuits over its Roundup weedkiller and potentially corral litigation that has cost the company over $10B, Bloomberg says4. MOVERS:Veradermicsgained after announcing its Phase 2/3 trial of VDPHL01RE/MAX Holdingsincreased after announcing it will befor $13.80 per shareFlowserve (FLS) rose afterthat Starboard has built a stake in the company and is pushing for changesCompass Therapeuticswas lower afterfrom its COMPANION-002 studyPoet Technologiesfell afterof Celestial AI purchase orders5. EARNINGS/GUIDANCE:Lakeland Financial, with CEO David Findlay commenting, "We started 2026 with robust, record net income for the second consecutive quarter"HBT Financial, with EPS and revenue beating consensusRepay Holdingsreportedand reaffirmed its guidance for FY26WWreaffirmed itsand FY26 financial guidanceGold RoyaltyreportedINDEXES:The Dow fell 62.92, or 0.13%, to 49,167.79, the Nasdaq gained 50.50, or 0.20%, to 24,887.10, and the S&P 500 advanced 8.83, or 0.12%, to 7,173.91.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 47.240
Low
43.00
Averages
46.42
High
51.00
Current: 47.240
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Continues to Rise: Verizon's overall revenue increased by 2.9% year-over-year to $34.4 billion, with service revenue rising 2.4% to $28.8 billion, indicating successful responsiveness to customer demand.
- Improved Profitability: Adjusted earnings per share (EPS) climbed 7.6% to $1.28, while EBITDA grew 6.7% to $13.4 billion, showcasing the company's dual advantages in cost control and revenue growth.
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- Revenue Continues to Rise: Verizon's overall revenue increased by 2.9% year-over-year to $34.4 billion, with service revenue rising 2.4% to $28.8 billion, indicating successful responsiveness to customer demand.
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- 2026 Performance Outlook: Despite a 35% increase in Sirius XM's stock price to $27 at the start of 2026, the company forecasts flat revenue and a slight decline in adjusted EBITDA, reflecting ongoing pressure on profitability.
- Verizon Earnings Highlights: Verizon reported a 3% year-over-year revenue increase in Q1 2026, with adjusted earnings growing nearly 8%, and raised its 2026 adjusted earnings guidance to $4.95 to $4.99 per share, showcasing robust profitability.
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- Dividend Safety Analysis: AT&T's payout ratio is approximately 37%, indicating a safer dividend, whereas Verizon's payout ratio is around 67%, which, while higher, still suggests that both dividends are considered secure by investors.
- Dividend Growth Trends: Verizon increased its dividend by 2.5% in Q1 2026 and has seen a nearly 13% rise over the past five years, while AT&T has not raised its dividend since 2020, leading to erosion of dividend income due to inflation.
- Company Performance Insights: Verizon reported positive net adds for postpaid phones in Q1 2026, with adjusted earnings expected to rise by 5% to 6%; AT&T's revenue grew by 2.9% but free cash flow fell to $2.5 billion, reflecting investment pressures in its fiber business.
See More
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- Dividend Yield Comparison: Verizon offers a 6% dividend yield, significantly higher than the S&P 500's average of 1.1%, while AT&T's yield is 4.3%, with a payout ratio of only 37%, providing a greater safety buffer for investors.
- Stock Performance Divergence: Over the past five years, Verizon's stock has declined by 16%, contributing to its high yield, whereas AT&T's stock has increased by 11%, highlighting a notable difference in market performance between the two.
- Financial Health Assessment: Verizon's Q1 2026 results indicate positive net adds in postpaid phone users, with expected adjusted earnings per share growth of 5% to 6%, while AT&T's revenue rose by 2.9% but free cash flow fell to $2.5 billion, reflecting increased investments in its fiber business.
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