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Verizon remains a strong buy with fiber growth and $1B deal despite slight revenue dip

Analyst Insights
10 Aug 2026
Seeking Alpha
View Source
Bullish
Verizon remains a strong buy with fiber growth and $1B deal despite slight revenue dip

Verizon Communications is still considered a strong buy despite recent underperformance and a slight decline in revenue. The company is shifting focus from equipment sales to reducing customer churn and expanding its broadband services, with fiber connections increasing by 43.3%. A major $1 billion-plus deal with Alphabet supports this growth. Management expects operating cash flow to grow 2–4% this year, targeting about $42.96 billion, and Verizon is valued as the cheapest among its peers based on EV/EBITDA. Its net leverage ratio of 2.62 is lower than competitors like AT&T and T-Mobile, indicating financial stability and a solid foundation for future business transformation.

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