Is VZ a good stock to buy? We came across a bullish thesis on Verizon Communications Inc. on The Boring Finance Guy’s Substack. In this article, we will summarize the bulls’ thesis on VZ. Verizon Communications Inc.’s share was trading at $50.37 as of March 25th. VZ’s trailing and forward P/E were 12.31 and 10.16 respectively according to Yahoo Finance.
Copyright: hywards / 123RF Stock Photo
Verizon Communications Inc. (VZ) is a legacy telecommunications leader undergoing a strategic transformation from a stagnating wireless provider into an integrated connectivity powerhouse, with a particular focus on high-speed fiber expansion. The acquisition of Frontier Communications significantly boosts Verizon’s fiber footprint, enabling bundled offerings that are expected to increase Average Revenue Per Account (ARPA) and reduce churn.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Verizon’s core wireless business remains resilient, generating $83.7 billion in service revenue in 2025, while growth in Fixed Wireless Access continues to add broadband subscribers, offsetting declines in legacy wireline services. The company’s business model now combines stable cash flows from its consumer and business segments with expansion opportunities in fiber and 5G monetization.
Verizon maintains disciplined capital allocation under CEO Dan Schulman, targeting a net leverage ratio of 2.0x–2.25x, guiding 2026 CapEx down to $16–16.5 billion, and supporting shareholder returns through a raised dividend for the 20th consecutive year alongside measured buybacks.
Despite a substantial $158 billion debt load, Verizon’s free cash flow of $20.1 billion in 2025 comfortably covers dividends, underscoring financial resilience. Strategic optionality is strong, with Frontier integration and 5G adoption offering potential upside in revenue and margins, while the scale of Verizon’s operations provides a competitive cost moat within a consolidated telecom oligopoly.
The market has not fully priced in the potential benefits from fiber expansion, FWA growth, and successful integration of Frontier, leaving room for a favorable rerating. With a current PEGY ratio of 1.93 signaling moderate overvaluation, Verizon still offers a compelling risk-adjusted opportunity, particularly for long-term income focused investors seeking a combination of yield and growth. The stock represents an attractive entry point around $45, reflecting the potential for upside as strategic initiatives materialize.
Previously, we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted the company’s strategic investments in 5G, IoT partnerships, fiber expansion, strong cash flow, and a 6.13% dividend yield, supporting both growth and income potential. VZ’s stock price has appreciated by approximately 19.44% since our coverage. The Boring Finance Guy shares a similar view but emphasizes the Frontier Communications acquisition and fiber integration as key drivers for ARPA growth and long-term rerating, with an attractive entry point around $45.
Verizon Communications Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held VZ at the end of the fourth quarter which was 60 in the previous quarter. While we acknowledge the risk and potential of VZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VZ and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
