Here's Why Wall Street is Bullish on Verizon Communications (VZ)

Verizon Communications Inc. (NYSE:VZ) is one of the Most Undervalued S&P 500 Stocks to Buy Right Now. Wall Street is bullish on the communication sector, anticipating 2026 to be a pivotal year for it. Verizon Communications Inc. (NYSE:VZ) remains under the spotlight with its par-expectation results in Q2 2025.

The company topped Wall Street estimates for both EPS and revenue, with the EPS of $1.22 coming in ahead of the consensus by $0.03 and the revenue beating expectation by a margin of $793.45 million.

Following the update, several analysts have expressed their bullish sentiment towards the stock. Earlier, on August 11, Gregory Williams of TD Cowen maintained a Buy rating on Verizon Communications Inc. (NYSE:VZ) with a price target of $56. The analyst expressed his confidence in the company’s ability to meet its updated EBITDA growth targets of 2.5% to 3.5%. Williams noted that this growth would be supported by the company’s solid service revenue and its cost-saving efforts.

More recently, on September 2, Goldman Sachs assumed coverage of the stock with a price target of $49. The firm noted 2026 to be a pivotal year for the communication services sector, which has been faced with high competition for connectivity customers. The firm believes investments in network modernization, spectrum, and brand would be the key differentiating factors for companies that realize the most attractive financial gains.

Verizon Communications Inc. (NYSE:VZ) provides communication and technology services. It offers wireless and wireline services, including 5G and 4G broadband.

While we acknowledge the potential of VZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.