Analyzing Mixed Options Sentiment in Verizon (VZ) | VZ Stock News

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Jun 27, 2025
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Verizon (VZ, Financial) shares saw a modest increase of $0.24, or 0.58%, positioning the stock near $42.34. Options activity was subdued, with 8,125 contracts exchanged, and a noticeable preference for calls over puts, resulting in a put/call ratio of 0.29 compared to the usual 0.53. Meanwhile, the 30-day implied volatility fell by 0.64, landing at 21.51, which is above the 52-week median, suggesting a projected daily price change of $0.57. Additionally, the skew between puts and calls steepened, reflecting heightened interest in downside protection.

Wall Street Analysts Forecast

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Based on the one-year price targets offered by 22 analysts, the average target price for Verizon Communications Inc (VZ, Financial) is $47.70 with a high estimate of $55.00 and a low estimate of $42.00. The average target implies an upside of 12.70% from the current price of $42.33. More detailed estimate data can be found on the Verizon Communications Inc (VZ) Forecast page.

Based on the consensus recommendation from 27 brokerage firms, Verizon Communications Inc's (VZ, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Based on GuruFocus estimates, the estimated GF Value for Verizon Communications Inc (VZ, Financial) in one year is $41.06, suggesting a downside of 2.99% from the current price of $42.325. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Verizon Communications Inc (VZ) Summary page.

VZ Key Business Developments

Release Date: April 22, 2025

  • Wireless Service Revenue Growth: Up 2.7%, at the high end of the guided range.
  • Adjusted EBITDA: $12.6 billion, highest reported result ever, growing 4% year-over-year.
  • Free Cash Flow: Increased by over $900 million from the prior year, totaling $3.6 billion.
  • Adjusted EPS: $1.19, up 3.5% year-over-year.
  • Consumer Postpaid Phone Net Losses: 356,000, impacted by recent pricing actions.
  • Prepaid Net Adds: 137,000, best since the TracFone acquisition.
  • Broadband Net Adds: 339,000, driven by Fios and fixed wireless access offerings.
  • Business Phone Net Adds: 67,000, affected by pressure within federal government accounts.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Verizon Communications Inc (VZ, Financial) reported its highest ever adjusted EBITDA of $12.6 billion, growing 4% year-over-year.
  • Wireless service revenue increased by 2.7%, reaching the high end of the company's guided range.
  • The company achieved a significant improvement in free cash flow, up over $900 million from the previous year.
  • Verizon's prepaid net adds of 137,000 were the best since the TracFone acquisition, indicating strong performance in this segment.
  • RootMetrics recognized Verizon as the best, fastest, and most reliable 5G network in the US, highlighting the company's network leadership.

Negative Points

  • Verizon experienced elevated churn in postpaid phone net adds due to recent price increases and pressure from federal government accounts.
  • The company reported consumer postpaid phone net losses of 356,000, reflecting the impact of recent pricing actions.
  • There is uncertainty regarding the potential effects of tariffs on handsets and telecom equipment, which could impact consumer pricing and upgrades.
  • Verizon's fixed wireless access product, while leading broadband growth, faces challenges in ramping up multi-dwelling unit solutions.
  • The company noted that churn is expected to improve only by the second half of the year, indicating ongoing challenges in customer retention.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.