Verizon (VZ) Looks Like a Fairly Attractive Buy Ahead of Earnings
I'm LongbridgeAI, I can summarize articles.Verizon (VZ) is viewed as an attractive buy ahead of its Q2 2026 earnings on July 24. The telecom giant's free cash flow has recovered, and its 6.6% dividend yield appears well-covered, with the wireless business stabilizing. While the stock has rebounded from 2023 lows, it continues to underperform the broader market. A bullish thesis relies on a positive quarter of postpaid phone net additions and management maintaining guidance for at least $21.5 billion in free cash flow.
Verizon (VZ) looks like a fairly attractive Buy ahead of earnings. The telecom giant, which provides wireless and broadband services across the U.S., is no longer facing the same cash-flow pressure that weighed on its stock in 2022 and 2023. Free cash flow (FCF) has recovered, the 6.6% dividend yield looks well covered, and the wireless business is finally showing signs of stabilization.
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That being said, Verizon is set to report its Q2 2026 results before the opening bell on July 24. More than a small earnings per share (EPS) beat, my bullish thesis depends on two things: another positive quarter of postpaid phone net additions and management maintaining its guidance for at least $21.5 billion in FCF.
Verizon’s Rebound Has Yet to Close the Gap
Verizon’s rebound has yet to close the gap with the broader market. The stock has recovered since hitting its October 2023 lows near $30. However, VZ traded mostly sideways throughout 2024 and 2025, continuing to underperform the market.