Verizon Communications Inc. (VZ) Analysis Summary

Performance

• VZ outperformed the Wireless National industry and S&P 500 in the last three months with a 10.5% gain.
• AT&T (T) outperformed VZ with a 13.3% gain, while Rogers Communications (RCI) and T-Mobile US, Inc. (TMUS) saw declines.

Growth Catalysts

• Benefits from 5G adoption, fixed wireless broadband momentum, and premium unlimited plans.
• Plans to accelerate 5G Ultra-Wideband availability.
• Offers mix-and-match pricing and a three-year price lock guarantee on certain plans.
• Aims for 8-9 million Fixed Wireless Access subscribers by 2028.
• Pending acquisition of Frontier will strengthen broadband business, exceeding its Fios passing target for 2025.

Challenges

• Wireline division faces access line losses.
• Intense competition and price wars impact margins.
• High capital expenditures for 5G build-out and fiber deployment affect cash flow.

Financials

• VZ reaffirmed its 2025 financial guidance, despite downward analyst estimates.

Valuation

• VZ's price/earnings (P/E) ratio is 9.3, below the industry average but above its historical mean.
• Competitors' P/E multiples: AT&T (T) - 13.21, T-Mobile (TMUS) - 22.64, Rogers Communications (RCI) - 7.28.

Recommendation

• VZ has a Zacks Rank #3 (Hold), suggesting investors should wait for a better entry point.