Is Verizon’s turnaround just a mirage?

Wireless carriers are under mounting pressure to keep customers from jumping ship. And even legacy giants like Verizon Communications are feeling the heat.

Rising competition, price-sensitive consumers, and discounted bundle offers from rivals have forced Verizon to rethink its playbook, and at least some of the new tactics appear to be gaining traction.

VZ stock is up roughly 27% in the past month, but investors are still debating whether it’s a short-term bounce or evidence of something sturdier.

Analyzing the strategy

Verizon’s recent struggles stem largely from its own pricing strategy. Multiple rate hikes over recent years pushed postpaid churn to 0.95%, up from 0.88% a year earlier. CEO Dan Schulman acknowledged that price increases “without corresponding value” drove customer losses.

As a result, Verizon lost share while rivals AT&T and T-Mobile US added subscribers.

The company is now pivoting from price hikes to customer growth, including aggressive promotion, focus on wireless and broadband bundles, and device unlock policy changes aimed at reducing the churn rate. Corresponding payroll cost cuts have led to roughly 13,000 job reductions.

Early indicators are showing results:

• 616,000 postpaid phone additions in Q4 beat expectations
• 2026 guidance for net additions sits between 750K and 1 million
• VZ stock is trading at under 10x expected current-year earnings

Still, the market remains cautious as customer retention, regulatory scrutiny, and competitiveness remain atop the list of analysts’ priorities.

So is Verizon a hidden gem?

Despite the recent rally, VZ stock still looks statistically cheap. P/E currently sits around 12x, whereas many US stocks are above 20x. Forward dividend yield is approaching the high-5% range. And the consensus EPS growth forecast is roughly 12% annually.

Zacks ranks Verizon a #3, or hold, with earnings estimates ticking modestly higher for a company that has beaten EPS expectations for four straight quarters. But revenue growth remains a sticking point.

As for whether this is the start of a long upward trend or just a sign that the stock is stabilizing, investors are reserving judgment until they see evidence of improving churn and accelerating growth.