Shift Away from Defensive Plays Hits Verizon Communications (VZ)

Shift Away from Defensive Plays Hits Verizon Communications (VZ)

Tue, September 8, 2026 at 5:44 PM GMT+3 3 min read

• VZ +0.38%

Impax Asset Management, based in London and specializing in sustainable investing, released its Q2 2026 investor letter for the "Impax US Sustainable Economy Fund". The letter can be downloaded here. The US Sustainable Economy portfolio outperformed the Russell 1000 in Q2 2026, with Institutional Class at 17.96%, Investor Class at 17.95%, and Class A at 17.92%, versus the index's 15.14%. Sector allocation and stock selection drove performance. The sustainability tools, including the Impax Sustainability Lens and Corporate Resilience framework, contributed positively. Equity markets rallied, with both the S&P 500 and Nasdaq reaching new highs before retreating. A key trend was rotation into AI and tech stocks, supported by mega-cap earnings and data center investments (US$750bn to US$1tn). In the second half of 2026, markets may remain volatile amid debates on AI adoption pace and economic momentum. However, growth tied to energy security and efficiency remains compelling, with demand for power, grid, and resource-efficient solutions supporting companies that benefit. The team focuses on businesses with strong growth, sound management, and attractive valuations, adjusting holdings as needed. This approach aims to build well-diversified, differentiated portfolios. Also, please check the fund's top five holdings for its best picks in 2026.

In its second-quarter 2026 investor letter, Impax US Sustainable Economy Fund highlighted Verizon Communications Inc. (NYSE:VZ). Verizon Communications Inc. (NYSE:VZ) is a leading telecommunication company that engages in the provision of communications, technology, information, and streaming products and services. On September 04, 2026, Verizon Communications Inc. (NYSE:VZ) closed at $50.14 per share. Over the past month, Verizon Communications Inc. (NYSE:VZ) returned 6.61%, but its shares are up 15.74% over the past year. Verizon Communications Inc. (NYSE:VZ) has a market capitalization of $208.32 billion, and its stock has traded within a 52-week range of $38.39 to $51.68.

Impax US Sustainable Economy Fund stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q2 2026 investor letter:

"Verizon Communications Inc. (NYSE:VZ) (Wireless Telecommunication Services, Communication Services) is held for its high Corporate Resilience score and its sustainability opportunity exposure in areas including Digital Infrastructure and Meeting Basic Needs. The stock fell during the quarter as investor focus shifted away from defensive yield plays toward growth and cyclical sectors. Concerns about subscriber churn in a highly competitive wireless market, and the heavy capital expenditure requirements of continued network infrastructure investment, weighed on the share price."

Verizon Communications Inc. (NYSE:VZ) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 79 hedge fund portfolios held Verizon Communications Inc. (NYSE:VZ) at the end of the second quarter, up from 75 in the previous quarter. While we acknowledge the potential of Verizon Communications Inc. (NYSE: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.

In another article, we discussed Verizon Communications Inc. (NYSE:VZ) and noted that its dividend appears stable though investors are advised to monitor the company's growth prospects. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.