Why Verizon Communications (VZ) is a Top Value Stock for the Long-Term

Zacks highlights Verizon Communications (VZ) as a value stock, noting its 'A' Value Style Score driven by a forward P/E ratio of 9.43. While VZ holds a Zacks Rank of #3 (Hold), four analysts have revised fiscal 2025 earnings estimates upwards in the last 60 days, bringing the consensus to $4.69 per share, and the stock has demonstrated a 1.5% average earnings surprise; Zacks suggests VZ should be on investor short lists.

Analysis

Verizon Communications (VZ) is identified by Zacks as a noteworthy value stock, meriting an 'A' for its Value Style Score, underpinned by an attractive forward P/E ratio of 9.43. Despite carrying a Zacks Rank of #3 (Hold), the company exhibits positive signals regarding its future earnings potential; specifically, four analysts have revised their fiscal 2025 earnings estimates upwards over the past 60 days, establishing a Zacks Consensus Estimate of $4.69 per share for that period. Furthermore, VZ has demonstrated a consistent ability to outperform expectations, evidenced by an average earnings surprise of 1.5%. The combination of these factors, including a 'B' VGM Score, leads Zacks to suggest that VZ warrants consideration for investors' shortlists, indicating a potentially undervalued opportunity within the telecommunications sector.

Key Decisions for Investors

• Value-oriented investors should assess Verizon's current valuation, highlighted by its 9.43 forward P/E and 'A' Value Style Score, as a potential entry point.
• Monitor upcoming earnings reports and further analyst revisions for fiscal 2025, as the recent upward trend and 1.5% average earnings surprise could signal improving fundamentals despite the current #3 (Hold) Zacks Rank.
• Given the strong value characteristics and positive earnings estimate revisions, consider placing Verizon on a watchlist for potential long-term investment, particularly if seeking exposure to a large-cap telecommunications company with improving analyst sentiment.