Verizon Communications Inc. (VZ): A Bull Case Theory 

We came across a bullish thesis on Verizon Communications Inc. on UnlearningCFA’s Blog’s Substack by UnlearningCFA. In this article, we will summarize the bulls’ thesis on VZ. Verizon Communications Inc.’s share was trading at $40.61 as of December 2nd. VZ’s trailing and forward P/E were 8.69 and 8.43 respectively according to Yahoo Finance.

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide, presents a unique investment scenario where governance signals appear to mitigate downside risk, creating a potential asymmetric opportunity for shareholders. On October 6, 2025, Verizon announced that Dan Schulman, former PayPal CEO and a director on the Verizon board since 2018, would immediately assume the CEO role.

Details of Schulman’s compensation, released on October 14, reveal significant front-loaded equity awards, including $9.5 million in RSUs vesting in 2026, $20 million in RSUs vesting in 2027, $30 million in relative-TSR PSUs with performance periods through 2026–2027, and 222,222 supplemental PSUs tied to stock price goals through 2028.

All equity grants begin their performance periods on October 17, 2025, representing the full allocation Schulman will receive through December 31, 2027. Simultaneously, Verizon granted $4 million retention RSUs to its EVP of Consumer and CFO, also effective October 17. This timing suggests the board had prior visibility of Q3 earnings, which are set to be announced on October 29, and implies confidence that results would not materially disappoint, as equity would typically be granted post-earnings to avoid overpaying at inflated prices.

The preemptive, front-loaded awards indicate a potential “spring-load” strategy, where executives are incentivized ahead of favorable earnings disclosures. Given Schulman’s long-standing board tenure and recent role as lead independent director, he would be uniquely positioned to influence such a decision. For investors, this governance setup signals that downside risk may be constrained while upside remains significant, effectively creating a low-cost, short-duration asymmetric opportunity akin to a call option on the stock, supported by alignment between executive incentives and upcoming corporate performance.

Previously we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted the company’s strategic 5G, IoT, and fiber investments alongside strong cash flow and dividend yield. The stock has depreciated approximately 3.69% since coverage. The thesis still stands as new CEO Dan Schulman’s governance and front-loaded equity awards mitigate downside risk. UnlearningCFA shares a similar perspective but emphasizes a potential “spring-load” strategy.

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Disclosure: None.