Is Verizon the Year's Best Telecom Stock?
Catie Hogan, The Motley Fool
Fri, September 18, 2026 at 12:35 PM GMT+3 2 min read
Verizon Communications' (NYSE: VZ) stock has been somewhat disappointing over the last several years. As a business, the telecom giant lagged its competitors, and investors saw minimal growth in its metrics and in its stock.
All that has changed in 2026, and Verizon has real potential to be the top-performing telecom stock this year.
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Verizon's turnaround story is impressive. Under new CEO Dan Schulman, Verizon is now consistently beating quarterly expectations. Schulman became the CEO in October 2025 after serving on the board of directors since 2018. In the second quarter of 2026, Verizon reported 184,000 in postpaid net phone additions, a stunning reversal from a loss just a year ago.
Verizon also acquired Frontier Communications, which has increased its fiber broadband connections by more than 43% year over year. Verizon is reducing costs significantly, targeting $5 billion in cuts in 2026 alone. Verizon's stock has responded to the improvements -- including expanding earnings before interest, taxes, depreciation, and amortization (EBITDA) and margins -- rising more than 25% this year as of this writing.
Verizon's biggest competitors, T-Mobile and AT&T, are both performing solidly but don't have the momentum Verizon has right now in the market or operationally. Verizon's growing dividend and successful execution of its turnaround make it a compelling investment. The stock is also still fairly priced, perhaps even slightly undervalued, if it can continue posting strong growth numbers. For those interested in comeback stories, it's worth a closer look.
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Catie Hogan has positions in AT&T. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.
Is Verizon the Year's Best Telecom Stock? was originally published by The Motley Fool
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