Verizon Gains 11% in 3 Months: Should You Invest in VZ Stock Now?

Core Viewpoint - Verizon Communications Inc. (VZ) has shown strong stock performance, gaining 10.5% over the past three months, outperforming the Wireless National industry's growth of 5.4% and the S&P 500 composite's decline of 7.9% [1][5]. Price Performance - VZ stock closed at $44.15, down only 6.7% from its 52-week high, indicating a relatively stable position in the market [5]. - Compared to peers, VZ outperformed Rogers Communications and T-Mobile, which declined by 5.5% and 0.8%, respectively, while AT&T gained 13.3% [4]. Key Growth Catalysts - Significant 5G adoption and fixed wireless broadband momentum are driving growth for Verizon, with plans to accelerate the availability of its 5G Ultra-Wideband network [6]. - The company recorded 137,000 retail prepaid net additions in the last quarter, the best since the TracFone acquisition [7]. - A three-year price lock guarantee for myPlan and myHome network plans aims to attract and retain customers [8]. - Verizon added 339,000 broadband net additions in Q1 2025, with expectations to achieve 8 to 9 million Fixed Wireless Access subscribers by 2028 [11]. - The enterprise and wholesale business is shifting towards growth services like cloud and security, with several private network deals closed in Q1 [12]. Challenges - The wireline division faces persistent losses due to competition from voice-over-Internet-protocol services and aggressive offerings from cable companies [13]. - The wireless market is highly competitive, with price wars and promotions impacting margins [14]. - High capital expenditures for 5G network build-out and fiber asset deployment raise concerns about achieving reasonable returns [15]. - Analysts have revised earnings estimates downwards, reflecting bearish sentiments for the stock [16]. Key Valuation Metric - VZ trades at a price/earnings ratio of 9.3, lower than the industry average of 14.10 but above its historical mean of 8.88 [18]. - Comparatively, AT&T, T-Mobile, and Rogers Communications have P/E multiples of 13.21, 22.64, and 7.28, respectively [19].