Is Verizon Communications Inc. (VZ) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where Verizon Communications Inc. (NYSE:VZ) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 74

Short Interest as of Apr 30, 2025: 1.89%

Verizon Communications Inc. (NYSE:VZ) is a technology, entertainment, communications, and information products and services provider. Evercore ISI recently upgraded the company from In Line to Outperform with an increased price target of $48. The research firm also highlighted Verizon Communications Inc. (NYSE:VZ) as its top pick in the wireless sector. Evercore is bullish on Verizon’s growth potential and broadband strategy.

Evercore mentioned:

“Notwithstanding some potential subscriber volatility, we remain confident in its [Verizon’s] ability to meet its wireless service revenue growth target.”

The company has entered into a partnership with Google Cloud to improve customer service using artificial intelligence technology. This collaboration has delivered impressive results. Thanks to AI, it enhanced customer service query quality by 95% and raised sales by around 40%.

Sampath Sowmyanarayan, CEO of Verizon’s consumer group business, mentioned:

“Our collaboration with Google Cloud and the integration of Gemini into our customer care platforms mark a significant advancement in our commitment to providing exceptional customer experiences.”

Heading into 2025, the firm anticipates sustained growth in adjusted EBITDA and wireless service revenue. Management remains confident in improving consumer postpaid phone net adds compared to the previous year.

Overall, VZ ranks 23rd on our list of best and worst Dow stocks. While we acknowledge the potential of VZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VZ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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