Is VZ a good stock to buy? We came across a bullish thesis on Verizon Communications Inc. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on VZ. Verizon Communications Inc.’s share was trading at $45.44 as of June 8th. VZ’s trailing and forward P/E were 11.07 and 9.15 respectively according to Yahoo Finance.
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Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide. VZ demonstrates that slow-and-steady telecom names can still deliver market-beating performance, as the stock recently broke out after a prolonged period of sideways trading. Income-focused investors have continued rotating into defensive, high-yield equities, with Verizon emerging as a key beneficiary of this shift.
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The company is not positioned as an AI-driven growth story, yet it outperformed after reporting stronger-than-expected fourth-quarter sales and earnings, raising its 2026 profit outlook, and announcing a $25 billion three-year share buyback program. Investor sentiment was further supported by macro uncertainty, including geopolitical tensions such as the US-Israel-Iran conflict, which encouraged demand for stable, defensive cash-generating businesses.
The company continues to offer an annual dividend of $2.83 per share, representing a yield of approximately 5.5%, reinforcing its appeal to income-oriented portfolios. Market strategist Kenny Polcari previously noted that Verizon may never resemble a high-growth tech stock but provides highly predictable cash flows, essential services exposure, and durable income generation that investors value in volatile markets.
The combination of a recent breakout, strong capital returns, and defensive positioning suggests continued upside potential as markets reward stability and shareholder-friendly policies. Overall, Verizon Communications is increasingly being re-rated as a defensive compounder, where consistent cash flow generation, a robust dividend profile, and aggressive capital returns through buybacks position the company as a reliable outperformer in uncertain markets, with continued upside potential as investors prioritize stability, income, and balance sheet strength over speculative growth narratives, supporting a sustained rerating trajectory over the medium term.
Previously, we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted strong cash flow generation, 5G and IoT expansion, and undervaluation despite leverage concerns. VZ’s stock price has appreciated by approximately 7.75% since our coverage. @MoneyShow shares a similar view but emphasizes macro-driven defensive rotation, breakout momentum, and capital returns via buybacks and dividends.
Verizon Communications Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held VZ at the end of the first quarter which was 73 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.
