Shares of leading telecom company Verizon Communications (VZ +1.28%) have been sluggish over the past 12 months, delivering flat returns over that time frame. And over the past five years, they’re down 25%, which is particularly disappointing given that the S&P 500 has been fairly strong over that stretch, rising by more than 70%.
Verizon’s stock had been rallying earlier in the year, but things have cooled off of late. However, later this month, there may be a potential catalyst that gives the stock a boost, as it’s scheduled to release its second-quarter earnings numbers on July 24. If they’re strong, that could be just what’s needed to get the stock back on a positive trajectory. Should you buy it before then?
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Why Verizon could use a positive distraction
In the early part of 2026, it looked like it might be a comeback year for this struggling stock, as Verizon was up over $50 and its year-to-date returns were approaching 30%. But gradually, it began to give back much of those gains, and with Space Exploration Technologies (also known as SpaceX) going public recently and raising concerns that the company could disrupt the telecom sector, Verizon’s stock fell even further.
However, a strong second-quarter performance could be just what’s needed for this recently troubled stock, reminding investors that Verizon’s doing just fine. And solid guidance could also reinforce the company’s status as a solid investment. It is, after all, coming off a particularly strong first quarter where its postpaid phone net additions were the strongest they’ve been since 2013. It also raised its adjusted earnings guidance. While it may be challenging to deliver another quarter as impressive as that, some solid Q2 numbers could be just what’s needed for the stock to rally again.
Today’s Change
(1.28%) $0.54
Current Price
$42.66
Key Data Points
Market Cap
Day’s Range
$42.43 – $42.81
52wk Range
$38.39 – $51.68
Volume
330.4K
Avg Vol
27.2M
Gross Margin
45.50%
Dividend Yield
8.24%
Now could be a golden opportunity to buy Verizon stock
Verizon’s stock looks undervalued, trading at just eight times its estimated future profits (based on analyst estimates), and at a price-to-book multiple of just 1.70. It’s a good value buy that also makes for an appealing dividend investment, with a yield of around 6.7%. As excitement around its Q1 results has faded, investors now have the opportunity to buy back in at a reduced price, almost at the levels Verizon was at back at the beginning of the year.
For long-term investors, this could be a great time to buy a quality stock at a discounted valuation, while also securing a fantastic yield.
