10 Most Profitable Undervalued Stocks to Buy

5. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 60

Forward PE: 9.03x

ROE: 16.86%

On February 3, 2026, RBC Capital raised its price target on Verizon Communications Inc. (NYSE:VZ) to $48 from $44 while maintaining a Sector Perform rating. The move followed Verizon’s fourth-quarter earnings beat. RBC pointed to the company’s turnaround plan, which centers on operating and capital expenditure reductions aimed at improving free cash flow. The firm also highlighted Verizon’s focus on growing its postpaid subscriber base and its commitment to return $25 billion to shareholders through share repurchases.

On the same day, JPMorgan and Citi also raised their price targets on Verizon Communications Inc. while reiterating Buy/Overweight ratings. JPMorgan lifted its target to $49 from $47, citing stronger-than-expected postpaid phone additions in the quarter and a more favorable financial outlook for 2026. Citi raised its target to $50 from $48, pointing to signs of a more aggressive restructuring effort that could support margin improvement and earnings stability over time. Both firms highlighted improving execution and welcomed Verizon’s plan to return $25 billion to shareholders through share repurchases.

These followed Verizon’s earnings report on January 30, 2026, when the company posted fourth-quarter revenue of $36.4 billion, slightly above the $36.2 billion consensus estimate. Postpaid phone net additions totaled 616,000, up from 504,000 a year earlier and marking the strongest quarter for that metric since 2019. CEO Dan Schulman said the quarter reflected early progress in Verizon’s turnaround, citing healthier volumes, disciplined growth, and momentum exiting 2025.

Verizon Communications Inc. (NYSE:VZ) provides communications, technology, information, and entertainment services to consumers, businesses, and government customers worldwide. The company operates through two main segments, Verizon Consumer Group and Verizon Business Group, giving it exposure across both retail and enterprise markets.