Should I Buy VZ? VZ 2026 Analysis

Should You Buy Verizon Communications Inc (VZ) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

39.410

1 Day change

0.23%

52 Week Range

46.610

Analysis Updated At

2026/01/26

Verizon Communications Inc (VZ) is not a strong buy for a beginner investor with a long-term horizon at this moment. While the company offers a high dividend yield and has shown positive financial growth in the latest quarter, the technical indicators are bearish, and the stock faces significant competitive pressures in the telecom industry. Additionally, hedge funds are selling the stock, and the stock is expected to be removed from the Dow Jones Industrial Average, which could weigh on sentiment. Congress trading data shows some positive interest, but this is not enough to outweigh the broader concerns.

Technical Analysis

The technical indicators for VZ are bearish. The MACD is negative and contracting, RSI is neutral at 48.638, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 39.638, with key resistance at 40.432 and support at 38.843.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Verizon has increased its dividend for 19 consecutive years, currently yielding over 7%, making it attractive for income-focused investors.
Congress trading data shows two recent purchase transactions with a median amount of $3.3M, indicating some positive sentiment from influential figures.
The company's Q3 financials showed strong growth in net income (up 49.73% YoY) and EPS (up 50.00% YoY).

Neutral/Negative Catalysts

Hedge funds are selling the stock, with a significant increase in selling activity (up 510.89% over the last quarter).
The stock is expected to be removed from the Dow Jones Industrial Average in 2026, which could negatively impact investor sentiment.
Analysts have lowered price targets recently, citing heightened competitive intensity in the telecom industry and execution risks.
Technical indicators are bearish, and the stock has a 60% chance to decline in the short term.

Financial Performance

In Q3 2025, Verizon's revenue increased by 1.47% YoY to $33.82 billion, net income surged by 49.73% YoY to $4.95 billion, and EPS grew by 50.00% YoY to $1.17. However, gross margin dropped slightly to 47.44%, down 1.23% YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have a mixed to neutral view on Verizon. Recent ratings include Equal Weight (Barclays) and Market Perform (Bernstein, Scotiabank). Price targets have been lowered across the board, with the highest target now at $51 and the lowest at $43. Analysts cite competitive pressures and execution risks as key concerns.

14 Analyst Rating

Wall Street analysts forecast VZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VZ is 46.42 USD with a low forecast of 43 USD and a high forecast of 51 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

10 Hold

0 Sell

Moderate Buy

Current: 39.320

Low

Averages

46.42

High

Current: 39.320

Low

Averages

46.42

High

Wells Fargo

Equal Weight

downgrade

$43 -> $41

AI Analysis

2026-01-26

New

Reason

Wells Fargo

Price Target

$43 -> $41

AI Analysis

2026-01-26

New

downgrade

Equal Weight

Reason

Wells Fargo lowered the firm's price target on Verizon to $41 from $43 and keeps an Equal Weight rating on the shares. Discussing the wireless sector, the firm says it expects fundamentals to be better than feared in Q4, with upside to subscriber numbers, even if ongoing concerns around incremental competition are likely to weigh down sentiment, leading Wells to lower price targets across the board.

Barclays

Equal Weight

initiated

$43

2026-01-22

Reason

Barclays

Price Target

$43

2026-01-22

initiated

Equal Weight

Reason

Barclays reinstated coverage of Verizon with an Equal Weight rating and $43 price target. The firm believes concerns over competitive intensity in the telecom market may be overdone. Investors will be "more tuned in to" Verizon earnings this quarter to understand implications for competitive intensity across the industry, the analyst tells investors in a research note.

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VZ Should I Buy

VZ Should I Buy

Should You Buy Verizon Communications Inc (VZ) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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