Verizon edges AT&T on valuation and price performance, both rated Hold

Zacks Investment Research··Read original
2▲2 ▼1Impact / 5
Summary · why it matters

Verizon Communications appears a better near-term investment than AT&T based on valuation and recent stock performance, according to a Zacks Investment Research analysis. Both telecom giants carry a Zacks Rank #3 (Hold) and are expanding fiber and convergence strategies to improve retention in a saturated U.S. wireless market. Verizon’s shares trade at 8.31 times trailing earnings versus 8.72 for AT&T, and Verizon has declined only 0.4% over the past year compared with a 24.8% drop for AT&T. The Zacks Consensus Estimate for AT&T’s 2026 earnings per share implies 9.43% growth with upward revisions, while Verizon’s estimate suggests 5.31% growth and has remained unchanged. Verizon reported its first positive first-quarter postpaid phone net additions since 2013 and is integrating its Frontier acquisition to expand fiber to 31 states, targeting more than $1 billion in run-rate cost synergies by 2028.

Impact on assets 5

Cloud & Digital Infrastructure± Mixed
AT&T Inc.
T
▼ NegativeCapitalrelevance

AT&T's trailing P/E is higher at 8.72 vs Verizon's 8.31, and its stock dropped 24.8% over the past year vs Verizon's 0.4% decline, making it less attractive on valuation and performance.

Verizon Communications Inc
VZ
▲ PositiveCapitalrelevance

Verizon trades at a lower P/E (8.31 vs AT&T's 8.72), has declined only 0.4% over the past year, and reported first positive Q1 postpaid phone net additions since 2013, indicating better valuation and performance.

Industrials▲
Frontier Group Holdings Inc
ULCC
▲ PositiveCapitalrelevance

Verizon is integrating its Frontier acquisition to expand fiber to 31 states, targeting over $1 billion in run-rate cost synergies by 2028, which is positive for Frontier as the acquired entity.

Others▲