VZ Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Verizon Communications Inc (VZ) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 to invest. While the stock offers a solid dividend yield of 6.1% and has a history of dividend increases, its recent financial performance, technical indicators, and trading sentiment suggest caution. The company's Q4 2025 financials showed a significant drop in net income and EPS, and hedge funds are heavily selling the stock. Additionally, Congress trading data indicates a cautious stance with a recent large sale. The stock's pre-market price is down, and technical indicators do not signal a strong entry point. For now, holding off on buying until clearer positive catalysts emerge or the stock stabilizes would be prudent.
The MACD is below zero and negatively contracting, indicating bearish momentum. RSI is neutral at 57.57, and moving averages are converging, showing no clear trend. Key resistance is at 47.212, with support at 44.729. The stock is trading near resistance, suggesting limited upside in the short term.
Verizon offers a strong dividend yield of 6.1% with a 19-year streak of increases, making it attractive for income-focused investors.
Analysts like Goldman Sachs and Scotiabank see potential for cost reductions, improved EBITDA, and free cash flow growth in the coming years.
The company's strategic turnaround under the new CEO could yield long-term benefits.
Hedge funds are selling the stock heavily, with a 510.89% increase in selling activity last quarter.
Congress trading data shows a recent sale transaction worth $10M-$25M, indicating caution.
Q4 2025 financials revealed a 53.21% drop in net income and a 53.39% decline in EPS, raising concerns about profitability.
The stock's pre-market price is down 0.98%, and technical indicators do not suggest a strong entry point.
In Q4 2025, Verizon's revenue grew by 1.96% YoY to $36.38B. However, net income dropped significantly by 53.21% YoY to $2.34B, and EPS declined by 53.39% to $0.55. Gross margin also decreased by 2.39% to 43.37%. These figures indicate declining profitability despite modest revenue growth.
Analyst sentiment is mixed. Recent upgrades from Erste Group, Scotiabank, and Daiwa highlight Verizon's profitability, cost reductions, and potential for revenue growth. However, downgrades from DBS Bank and cautious ratings from Morgan Stanley and Barclays suggest skepticism about the company's ability to execute its strategic turnaround. Price targets range from $47 to $58, with a median around $52.
