Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smart watches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

Verizon appears to be a mature telecom business with stable operating profit, but with a notable debt burden and weak liquidity. Its P/E valuation looks moderate: the multiple is below the industry median, which supports the idea that it may be undervalued; however, its P/S and P/B are above industry benchmarks, so the stock does not look cheap on revenue or book value. P/FCF is below the median, which is a strong argument in favor of the quality of cash flow and the company’s ability to support dividends. Overall, the company’s profitability is solid: ROE is above the median, and operating and net margins are also above the industry average, while gross margin remains stable and slightly better than the market. At the same time, ROA is below the median, indicating less-than-ideal returns on a very large asset base, which is typical for the capital-intensive telecom sector. Profit and operating income trends over recent periods look fairly stable, with no signs of sharp deterioration, and revenue remains at a high and relatively stable level. On the other hand, the current ratio and quick ratio are noticeably below industry levels, indicating weak short-term liquidity. Debt to capital is significantly above the median, and long-term debt continues to rise, so financial leverage remains a key risk for shareholders. Dividend yield is positive and supports the investment case, but it is not high enough to fully offset debt pressure and limited balance-sheet flexibility. Net worth and equity are large in absolute terms, but this does not eliminate concerns about high leverage and low liquidity. Overall, the fundamentals support a moderately cautious view: the business is high-quality and cash-generative, but the valuation no longer looks deeply cheap, and the balance sheet requires discipline. For the target price, this implies a slight negative bias, since strong operating margin and low P/FCF are partly offset by debt, weak liquidity, and less attractive P/S and P/B ratios.

Verizon Communications Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, без изменений. Отток средств из лонгов на высоком уровне.

Medium index, flat. Outflow of funds from longs at a high level.

Strong margins and a low P/FCF support Verizon, but high debt, weak liquidity, and unfavorable P/S and P/B limit revaluation potential.

(RTTNews) - Verizon Communications (VZ) revealed earnings for its third quarter that Increases, from the same period last year
The company's bottom line came in at $5.198 billion, or $1.25 per share. This compares with $4.950 billion, or $1.17 per share, last year.
Excluding items, Verizon Communications reported adjusted earnings of $1.31 per share for the period.
The company's revenue for the period rose 1.5% to $34.313 billion from $33.821 billion last year.
Verizon Communications earnings at a glance (GAAP) :
-Earnings: $5.198 Bln. vs. $4.950 Bln. last year. -EPS: $1.25 vs. $1.17 last year. -Revenue: $34.313 Bln vs. $33.821 Bln last year.
-Guidance: Full year EPS guidance: $ 5.04 To $ 5.06
full-year 2026 guidance
Mobility and broadband service revenue: upper half of annual guidance of 2.5 to 3.0 percent growth, with approximately 4.0 percent growth in fourth-quarter 2026.

Verizon Communications Reports Climb In Q3 Profit

Key Points
A report that SpaceX wants access to 80,000 U.S. cell sites sent tower stocks soaring and telecom stocks down on Friday.
The last company that tried to become America's fourth wireless carrier ended up fighting its tower landlords in court.
There were some big moves in telecommunications stocks on Friday. On one hand, shares of cell tower owners Crown Castle (NYSE:CCI) and American Tower (NYSE:AMT) soared, with shares up by about 9% and 4%, respectively, as of midday. On the other hand, the three largest wireless carriers plunged, with Verizon (NYSE:VZ), AT&T (NYSE:T), and T-Mobile (NASDAQ:TMUS) all deep in the red.
Both moves are due to one company, SpaceX (NASDAQ:SPCX). On Thursday evening, Bloomberg reported that SpaceX is in talks to secure at least 80,000 cell sites across the United States as it aims to become the fourth nationwide wireless carrier. For context, 80,000 sites would represent about half of all the purpose-built cell towers in the U.S., so it would be a pretty big move.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
This is the second time in October that SpaceX has sent shockwaves through the telecom industry. First, on Oct. 9, SpaceX agreed to buy $8 billion in low-frequency wireless spectrum, and telecom stocks plunged. So, will SpaceX truly boost the tower companies and cost the telecom leaders money?
Why are the tower companies soaring?
First, a little context on how the cell tower business works. The owner builds a tower and then rents space on it to wireless carriers, typically under long-term leases. Next time you drive by a cell tower, take a look at the top. You'll probably see several rings of transmission equipment, and each of those represents a tenant. Since the tower is already standing, adding tenants produces extra revenue with very little additional cost.
Ever since Sprint was acquired by T-Mobile, the tower industry has essentially had three wireless customers. The majority of Crown Castle's rent comes from AT&T, Verizon, and T-Mobile. A well-capitalized fourth player would mean more tenants per tower.
This is also a notable expansion of SpaceX's plans. Although the company has made its telecom network ambitions known for some time, as recently as August, management described its network as small cells mounted on rooftops (not traditional towers). But without getting too technical, the low-band spectrum it bought makes large towers far more useful, so it makes sense to add them to the plan.
Of course, this isn't the first time a "fourth carrier" has emerged. Just a few years ago, Dish Network signed long-term tower leases to build its own 5G network. To make a long story short, Dish's parent company sold most of its spectrum in 2025 and began shutting down the network. Of course, SpaceX is a far more deep-pocketed tenant and could easily afford to build a nationwide network.
Should investors forget about the carriers?
SpaceX is certainly a threat to the big three wireless carriers, but the recent sell-off appears a bit overdone. After all, SpaceX would be starting with no wireless customers at all, it holds less spectrum than any of the others, and its service isn't expected to launch commercially until late 2027. And building a competitive network would be a multiyear process at a minimum.
Let's be clear. SpaceX could certainly pressure the three major wireless carriers over time, but this isn't exactly a death sentence for them either. All have existed in the past with a fourth competitor (Sprint), and pricing power hasn't changed that much since the number dropped to three.
The bottom line
If you're thinking about buying tower owners as a momentum play or telecoms at a discount, it might be a smart idea to be patient. For one thing, although Crown Castle was specifically mentioned as a company SpaceX was in talks with, there isn't a signed contract or any official management acknowledgment yet. And the telecom sell-off may be overdone, as all that is happening right now is that a potential competitor (who would be starting from scratch) is negotiating with landlords.
In a nutshell, the market is pricing in a deal that hasn't happened yet, and the reaction on both the tower owner and wireless carrier side may be a bit overdone. I'm keeping an eye on some of the stocks involved, but I'm waiting for further official developments before making any moves.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $361,596!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,303,935!*
Now, it’s worth noting Stock Advisor’s total average return is 910% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 23, 2026.
Matt Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower and Crown Castle. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.

SpaceX Just Made Cell Towers Cool Again. Verizon, AT&T, and T-Mobile Are Paying the Price

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Value ETF (Symbol: IWX) where we have detected an approximate $384.1 million dollar outflow -- that's a 10.2% decrease week over week (from 33,300,000 to 29,900,000). Among the largest underlying components of IWX, in trading today Walt Disney Co. (Symbol: DIS) is up about 0.9%, Verizon Communications Inc (Symbol: VZ) is up about 0.9%, and McDonald's Corp (Symbol: MCD) is higher by about 0.3%. For a complete list of holdings, visit the IWX Holdings page » The chart below shows the one year price performance of IWX, versus its 200 day moving average:
Looking at the chart above, IWX's low point in its 52 week range is $87.26 per share, with $113.95 as the 52 week high point — that compares with a last trade of $113.51. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IWX Research:

IWX, DIS, VZ, MCD: ETF Outflow Alert

The Elon Musk-operated company is expanding into broader wireless services.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
*Stock prices used were the afternoon prices of Oct. 9, 2026. The video was published on Oct. 11, 2026.
Should you buy stock in AST SpaceMobile right now?
Before you buy stock in AST SpaceMobile, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AST SpaceMobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 14, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

SpaceX Delivers Unfortunate News for Verizon, ATT, T-Mobile, and AST Space Mobile Stock Investors

The S&P 500 Index ($SPX) (SPY) closed down by -0.02% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.31%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) fell -0.32%.
Stock indexes settled lower on Tuesday, with the Nasdaq 100 falling to a 1.5-week low. Weakness in chipmakers weighed on the broader market Tuesday amid concerns that investment in artificial intelligence may be unsustainable due to safety concerns and signs of funding strain. Also, a selloff in South Korea’s Samsung Electronics and SK Hynix knocked South Korea’s Kospi Index down more than -5% on Tuesday to a 2.5-month low amid concerns over intensifying competition from China, adding additional pressure to chip stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
However, stocks recovered from their worst levels on Tuesday as bond yields fell on dovish Fed comments that bolstered speculation the Fed won’t be forced to raise interest rates aggressively. Fed Governor Christopher Waller said the recent surge in long-term bond yields is helping to curb demand in interest-rate-sensitive sectors, such as housing and automobiles, doing some of the Fed's work to tighten monetary policy. Waller’s comments suggest he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee limited the decline in T-note yields when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy. The 10-year T-note yield fell -3 bp to 5.21%.
Tuesday’s US economic news was supportive for stocks after Sep existing home sales unexpectedly rose +1.5% m/m to 3.99 million, stronger than expectations of a decline to 3.95 million.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.”
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
The International Monetary Fund (IMF) raised its 2026 global GDP forecast to 3.1% from 3.0% in July and kept its 2026 global consumer price forecast unchanged from July at 4.7%.
Nov WTI crude oil prices (CLX26) rose slightly on Tuesday amid concerns about Middle East energy-supply disruptions. Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen in recent days, while Iran has ramped up attacks on shipping in the Strait of Hormuz.
Gains in crude were limited on Tuesday after Saudi Arabia said its Sep crude production rose by +2 million bpd (+40% m/m) to 8.732 million bpd, recovering from a 36-year low in August. Goldman Sachs estimates a $24-a-barrel risk premium in crude oil prices due to the Middle East conflict. However, if Europe releases half the diesel it has announced from reserves, fair value prices could fall by about $11 a barrel.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.55%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.10%. Japan's Nikkei-225 Stock Average fell to a 1.5-week low and closed down -1.82%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +5.5 ticks on Tuesday. The 10-year T-note yield fell -2.5 bp to 5.213%. Dec T-notes rose to a 1-week high on Tuesday, and the 10-year T-note yield fell to a 1-week low of 5.171%. Lower inflation expectations supported gains in T-notes on Tuesday after the 10-year breakeven inflation rate fell to a 1-week low of 2.336%. Dovish Fed comments also supported T-note prices on Tuesday when Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed’s work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said that after the Fed hikes rates one more time this year, he believes the Fed’s rate-hike cycle is done.
T-note gains were limited Tuesday after Chicago Fed President Austan Goolsbee said inflation remains too high. Also, Tuesday’s report showing Sep existing home sales unexpectedly increased weighed on T-notes.
European government bond yields were mixed on Tuesday. The 10-year German bund yield fell to a 1-week low of 3.426% and finished down -0.8 bp to 3.469%. The 10-year UK gilt yield rose +0.7 bp to 5.447%.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated for a second session on Tuesday, weighing on the overall market. Applied Materials (AMAT) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100 after failing to give a detailed outlook at an investor day conference. Also, Micron Technology (MU) and KLA Corp (KLAC) closed down more than -3%, and Lam Research (LRCX) closed down more than -2%. In addition, ASML Holding NV (ASML) and Western Digital (WDC) closed down more than -1%.
Pharmaceutical stocks sold off on Tuesday. Vertex Pharmaceuticals (VRTX) closed down more than -4%, and Merck & Co (MRK), Ionis Pharmaceuticals (IONS), Jazz Pharmaceuticals Plc (JAZZ), and Untragenyx Pharmaceutical (RARE) closed down more than -2%. Also, Gilead Sciences (GILD), Amgen (AMGN), Eli Lilly (LLY), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) closed down more than -1%.
Energy producers and service providers rallied on Tuesday as WTI crude prices rose. Valero Energy (VLO) closed up more than +4%, and Marathon Petroleum (MPC) and Phillips 66 (PSX) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Devon Energy (DVN) closed up more than +2%, and Chevron (CVX), Diamondback Energy (FANG), and ExxonMobil Holdings (XOM) closed up more than +1%.
Telecom operators moved higher on Tuesday. Charter Communications (CHTR) closed up more than +4%, and T-Mobile US (TMUS), Comcast (CMCSA), Verizon Communications (VZ), and AT&T (T) closed up more than +1%.
Syndax Pharmaceuticals (SNDX) closed down more than -16% after saying its MAXPIRe Phase 2 trial of its axatilimab to treat idiopathic pulmonary fibrosis failed to meet its primary endpoint.
AST SpaceMobile (ASTS) closed down more than -8% after Piper Sandler downgraded the stock to neutral from overweight.
SentinelOne (S) closed down more than -6% after announcing that it intends to offer $1.25 billion in convertible senior notes due in 2031 via private placement.
Johnson & Johnson (JNJ) closed down more than -5% to lead losers in the Dow Jones Industrials after forecasting full-year sales of $101.00 billion to $101.40 billion, the midpoint below the consensus of $101.24 billion.
Domino’s Pizza (DPZ) closed down more than -5% after reporting Q3 total domestic store comparable sales growth of +0.30%, below the consensus of +0.72%.
Meta Platforms (META) closed up more than +2% to lead gainers in the Nasdaq 100, adding to Monday’s +3% gain, after releasing a new artificial intelligence model called Muse Wonder, which the company claims has “frontier capabilities.”
Ollie’s Bargain Outlet Holdings (OLLI) closed up more than +2% after its Board of Directors approved a $500 million stock buyback plan.
Amer Sports (AS) closed up more than +2% after Jefferies initiated coverage on the stock with a buy recommendation and a price target of $42.
Earnings Reports (10/14/2026)
Bank of America Corp (BAC), Blackrock Inc (BLK), Fastenal Co (FAST), Morgan Stanley (MS), Progressive Corp/The (PGR), State Street Corp (STT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Finish Lower Ahead of Wednesday’s CPI Report

Key Points
Investing in stocks that are trading at low valuations can yield significant returns in the future.
The stocks on this list have all underperformed the market this year, but they could be overdue for significant rallies.
Chasing high-flying stocks can be exciting, but it can also be risky for investors who buy near or at the peak. The real big payoff for investors can come from buying up shares of struggling stocks that the market has become bearish on and that are trading at discounted valuations.
While not all stocks that are down will recover, three that I think are absurdly cheap and that I'd consider buying before the end of 2026 are Viking Therapeutics (NASDAQ:VKTX), Verizon Communications (NYSE:VZ), and Royal Caribbean Cruises (NYSE:RCL). Here's why these look like incredible deals right now.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Viking Therapeutics
Viking Therapeutics has been a volatile stock to own in recent years. It closed on Tuesday at less than $27, and it was less than a month ago that it hit highs of more than $40.
The healthcare company has loads of potential upside thanks to its promising GLP-1 drug, VK2735. It's been doing well in clinical trials, and the reason for the surge last month was due to encouraging results that showed it could not only help people lose between 16% to 19% while on the drug for 21 weeks, but it also helped them keep the majority of the weight off when switching to less frequent maintenance doses.
The company doesn't have an approved drug in its portfolio just yet, but with VK2735 doing well in late-stage trials, it may only be a matter of time before that changes, and when it does, the stock could soar in value.
Unfortunately, because Viking is burning through cash, it needs to raise capital to continue developing its drugs, so the risk of dilution is high. But I think better days are ahead for Viking, and a larger healthcare company seeking exposure to the lucrative GLP-1 market could also make a bid to acquire Viking in the future. With a market cap of just $3 billion, I could see the stock easily doubling in value.
Verizon Communications
Verizon is an excellent dividend stock to buy, and with it yielding 6.6%, it may even be too good to pass up at these levels. Its business is doing well, generating steady growth, and its payout ratio of around 70% also suggests the dividend is just fine.
What's been weighing on Verizon and other telecom stocks of late is the fear that Space Exploration Technologies Corp., also known as SpaceX, will disrupt the industry, as it recently announced it would acquire low-band spectrum from Grain Management, which could help Starlink grow its mobile business nationwide. It's a risk, but one that I believe is overblown right now.
Verizon's still an industry leader, and that's not likely to change anytime soon. Meanwhile, with the stock offering a high yield and it trading at just nine times its estimated future profits (based on analyst expectations), it's an incredibly appealing dividend stock to load up on right now.
Royal Caribbean Cruises
One stock that I regret not already pulling the trigger on is Royal Caribbean. The cruise ship operator's stock fell last month after it announced it would be acquiring a 50% stake in Sandals and Beaches Resorts for $3 billion. It briefly hit a new 52-week low of around $222 before recovering.
However, even at its current share price, it's a terrific deal for long-term investors. The investment in Sandals is a great example of how Royal Caribbean is expanding its business beyond just cruises. By diversifying and offering more experiences, the company is poised for much more long-term growth.
Its cruise business is already doing tremendously well, with its performance coming in better than expected in its most recent quarter. The company also recently raised its guidance, projecting 9% revenue growth for the full year and 14% growth in adjusted earnings.
At just 11 times its estimated future profits, the stock is an all-out bargain buy. For long-term investors, this can be a solid investment to buy and hold for years.
Should you buy stock in Viking Therapeutics right now?
Before you buy stock in Viking Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Viking Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications and Viking Therapeutics. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Absurdly Cheap Stocks to Buy Before the End of 2026

AT&T Inc. T is scheduled to report third-quarter 2026 earnings on Oct. 21, before the opening bell. The Zacks Consensus Estimate for revenues and earnings is pegged at $31.68 billion and 61 cents per share, respectively. The earnings estimate for AT&T for 2026 has decreased 0.43% to $2.33 per share over the past 60 days, while the same for 2027 has decreased 1.17% to $2.54 per share.
Image Source: Zacks Investment Research
Earnings Surprise History
The communications service provider delivered a trailing four-quarter earnings surprise of 6.26%, on average.
Earnings Whispers
Our proven model predicts a likely earnings beat for AT&T for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here. AT&T currently has an ESP of +3.77% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Shaping the Upcoming Results
During the quarter, AT&T introduced AT&T Video Intelligence with EdgeVis Cloud, a managed cloud deployment option that expands its existing IoT Video Intelligence platform. The offering combines optimized video streaming, secure transmission, analytics and alerting with an AT&T-managed cloud backend. It is designed to simplify deployment and reduce infrastructure requirements for enterprise, mid-market, large SMB and public-sector customers. Potential applications include construction sites, transportation corridors, utility operations, logistics yards, retail locations, smart-city pilots and emergency response sites.
In the quarter under review, AT&T announced that Ericsson will provide 600 MHz dual-band radios to support deployment of spectrum acquired from EchoStar. AT&T said the new spectrum and radios will improve network capacity, coverage, reliability and performance, including in indoor and rural locations. The company is more than 60% through its wireless network modernization program. In upgraded areas, customers can see up to 2X higher average speeds, a 10% reduction in dropped and blocked calls, and up to a 70% reduction in slower data speeds.
AT&T and Corning also inked a multi-year agreement worth more than $3 billion, under which Corning will supply the fiber-optic cables. The materials will enable AT&T to expand its high-speed internet network across the United States.
However, AT&T continues to face intense competition in the U.S. telecom market from Verizon Communications, Inc. VZ and T-Mobile, US, Inc. TMUS. This could impact subscriber growth and impact revenue.
Over the past year, AT&T has declined 13.3% against the industry’s growth of 122.7%, outperforming its peers like T-Mobile but underperforming Verizon. T-Mobile has declined 34%, while Verizon has improved 4.8% during this period.
Key Valuation Metric
From a valuation standpoint, AT&T appears to be trading relatively cheaper than the industry and below its mean. Going by the price/earnings ratio, the company shares currently trade at 8.89 forward earnings, lower than 36.25 for the industry and the stock’s mean of 10.74.
Image Source: Zacks Investment Research
Investment Considerations
T continues to benefit from its fiber-led growth strategy and efforts to increase customer adoption of bundled connectivity services. AT&T had expanded its fiber footprint to 38.6 million locations by the end of the second quarter and aims to exceed 40 million locations by year-end 2026. Continued fiber deployment and the integration of Lumen’s acquired mass-market fiber customer base could support broadband growth. This may also encourage more households to purchase wireless and Internet services together. Its bundled offerings is improving customer retention and strengthen long-term revenue visibility.
However, intense competition in the U.S. wireless market remains a challenge for AT&T. Although wireless service revenues increased 3.3% year over year in the second quarter, promotional discounts partially offset the benefits of pricing actions. Persistent competition from major telecom operators could require continued spending on customer acquisition and retention, limiting revenue gains per subscriber.
End Note
AT&T continues to invest in fiber and fixed wireless to expand advanced Internet reach and deepen household convergence with wireless. Focus on 5G network upgradation worldwide will likely bring long term benefits. Strategy of bundled product offerings by combining wireless and broadband is driving retention. However, However, aggressive competition in wireless services, declining legacy revenues and substantial capital requirements remain key challenges. AT&T’s balance sheet remains leveraged while investment, spectrum needs and shareholder returns compete for cash. With a Zacks Rank #3 (Hold), AT&T presents a balanced outlook ahead of its third-quarter earnings report, making execution on its fiber-led growth strategy and cash flow targets important factors for investors to monitor.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Does T Stock Deserve a Spot in Your Portfolio Ahead of Q3 Earnings?

Key Points
AST is getting ready to launch three more BlueBird satellites, but it’s still far from its near-term target of 45 to 60 satellites.
It needs to reach at least 45 satellites to start generating commercial revenue.
AST SpaceMobile (NASDAQ: ASTS), a developer of low Earth orbit (LEO) satellites, has successfully launched 13 of its BlueBird satellites to date. These satellites, which are much bigger than SpaceX's (NASDAQ: SPCX) Starlink satellites, help telecom giants like AT&T (NYSE: T) and Verizon (NYSE: VZ) expand their cellular networks to remote areas that their terrestrial towers can't reach. AST is already working with over 60 carriers to reach more than 3 billion wireless subscribers worldwide, so it clearly has plenty of room to grow.
However, AST doesn't generate any recurring commercial revenue yet. Instead, it generates all of its revenue from government contracts and prepayments from its telecom partners.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
For AST SpaceMobile to deliver stable cellular connections and generate recurring commercial revenue, it must expand its constellation to at least 45 satellites. It had planned to reach that milestone by late 2026. But in mid-July, it pushed back that target to early 2027.
AST just delivered its next three BlueBird satellites (14, 15, and 16) to Cape Canaveral, but it's unclear when it will launch them. It's also continuing the production of its future satellites through BlueBird 50. Should you invest in AST before its commercial business finally blasts off?
What could happen to AST SpaceMobile over the next few years?
From 2025 to 2028, analysts expect AST SpaceMobile's revenue to surge from $71 million to $1.73 billion as it begins providing direct-to-cell services to AT&T and Verizon. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in 2027 and soar nearly 17 times to $1.25 billion in 2028. That growth should be driven by the gradual expansion of its constellation toward its long-term goal of 248 satellites.
With an enterprise value of $17.2 billion, AST's stock trades at 15 times its projected 2028 adjusted EBITDA. That valuation looks reasonable relative to its growth potential, but three unpredictable headwinds are driving away the bulls and compressing its valuations.
First, Starlink's recent acquisition of T-Mobile's (NASDAQ: TMUS) 800 MHz spectrum will position it as a major competitor for AT&T and Verizon in the wireless market. To keep up, AT&T and Verizon will likely need to ramp up their spending on AST's satellite services. However, AST could struggle to expand its constellation fast enough to meet that demand.
Second, AST is completely dependent on third-party launch partners -- including SpaceX and Blue Origin -- to carry its satellites into orbit. Therefore, AST has much less control over its own launch schedule than SpaceX, which launches its Starlink satellites with its own rockets.
Lastly, AST will continue to issue more debt and shares to support its capital-intensive expansion. It ended its latest quarter with $2.96 billion in long-term debt, and its share count has increased by 479% since it closed its SPAC merger on April 6, 2021. If the Fed continues to raise its benchmark rates, its borrowing costs and interest payments could skyrocket.
Is it the right time to buy AST SpaceMobile's stock?
AST SpaceMobile has plenty of growth potential, but it will struggle to attract new investors as long as interest rates are rising. SpaceX also stands out as a more diverse and vertically integrated player in the space logistics, satellite internet services, and AI markets.
That's why AST's stock has declined more than 40% over the past 12 months, and why it could sink even lower before it's considered a bargain. AST might deserve a closer look if it successfully expands its constellation to 45 satellites next year. Still, investors should assess how much that expansion increases its debt and dilutes existing shares before pulling the trigger.
Should you buy stock in AST SpaceMobile right now?
Before you buy stock in AST SpaceMobile, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AST SpaceMobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 11, 2026.
Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.

AST SpaceMobile Shipped 3 More BlueBird Satellites to Cape Canaveral. Here's How Many It Needs in Orbit Before Revenue Shows Up.

Key Points
Walmart and PepsiCo are Dividend Kings with more than 50 years of annual dividend increases.
Realty Income has outperformed the S&P 500 in 11 of its 13 corrections since the REIT's 1994 market listing.
Verizon has increased its high-yielding dividend every year for two decades.
The stock market can get choppy at times. In April 2025, the S&P 500 fell more than 10% over three days after President Trump announced his "Liberation Day" tariffs, one of the fastest corrections in recent history. By the time the market finally calmed down and selling subsided, the S&P 500 was down almost 19% from its February peak, just shy of an official bear market. However, almost as quickly as it happened, the market reversed much of its decline a week later after the President announced a 90-day tariff pause, and reclaimed almost all its losses within a month.
The thing about choppy markets like that is that no one can predict them in advance. What we can do is prepare for them by owning businesses built to weather the market's inevitable storms. Durable characteristics include resilient earnings throughout the economic cycle, a long track record of dividend growth, and demonstrated pricing power.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Walmart (NASDAQ: WMT), Realty Income (NYSE: O), PepsiCo (NASDAQ: PEP), and Verizon (NYSE: VZ) each have these key traits. That makes them steady stocks to own before the market gets choppy.
Walmart
Walmart is one of the world's largest retailers, with more than 10,900 stores in 19 countries and annual sales of $713 billion. That scale gives Walmart pricing power and the leverage to press vendors for lower prices. The company focuses on helping consumers save money, and primarily sells essential products such as groceries and household goods. The company's focus on delivering value to consumers drives more resilient sales during economic downturns as they trade down from higher-cost retailers.
The retailer has increased its dividend for 53 straight years, qualifying it as an elite Dividend King, a company with 50 or more years of annual dividend increases. That multi-decade dividend growth streak includes several recessions, showcasing the resilience of its earnings.
We saw Walmart's steadiness on full display during 2025's choppy market period. While the S&P 500 was down over 5% by the end of April, Walmart's stock was up over 7%.
Realty Income
Realty Income is one of the world's largest real estate investment trusts (REITs). It owns a diversified portfolio of retail, industrial, gaming, data center, and other properties, secured by long-term net leases with many of the world's leading companies (including Walmart, a top-20 tenant at 0.9% of its annual base rent). The company's leases provide it with very durable income, as most of its rent comes from tenants in industries resilient to economic downturns. Meanwhile, most of its leases feature annual rental escalation clauses (either fixed rate increases or those tied to inflation).
The REIT's stable, steadily rising rental income supports its growing monthly dividend. It has increased its dividend 136 times since its public market listing in 1994 (more than 31 straight years). Realty Income's strong financial profile also enables it to invest billions of dollars annually in new income-generating real estate.
Realty Income has proven to be very resilient in choppy markets. The REIT has outperformed the S&P 500 in 11 of the 13 drawdowns of 10% or more since its 1994 listing. Its stock has fallen by an average of 2.6% compared to the S&P 500's average decline of 22.6% during these corrections.
PepsiCo
PepsiCo is a global beverage and snacking leader with about $95 billion in annual sales. It owns leading brands, including Pepsi, Mountain Dew, Quaker, and Doritos. While the company is currently facing demand and cost headwinds, it still expects to deliver low-single-digit organic revenue and earnings-per-share growth this year. Its ability to deliver volume growth while pushing through price increases demonstrates its pricing power.
Like Walmart, PepsiCo is a Dividend King. It extended its streak to 54 straight years in 2026. With a rock-solid balance sheet and its business generating strong, growing free cash flow, PepsiCo can continue to grow its dividend during more challenging times. That's evident in its current headwinds, as it hiked its dividend by another 4% in 2026.
PepsiCo stock tends to be much less volatile than the S&P 500. It has a three-year beta of less than 0.5, compared with the S&P's 1.0. This implies that if the S&P 500 drops 10%, PepsiCo stock would typically fall only 5%.
Verizon
Verizon is a leading mobile and broadband company. It generates recurring revenue that tends to be highly durable because wireless and internet services are essential for most consumers. While it's easier to switch providers now than it was in the past, Verizon's high-quality network and scale help reduce customer churn.
The company has raised its dividend for 20 straight years. It generates significant free cash flow after investing in network expansion, more than sufficient to cover its dividend. That provides it with excess cash to repurchase shares and maintain its solid balance sheet.
Verizon offers a high dividend yield (nearly 7%). While that high yield reflects its slower growth and higher risk profile due to competition, it also provides investors with a meaningful real return in choppy markets.
Save havens when the market gets choppy
There's no telling when the next market downturn will occur. That's why it's smart to be prepared for choppy markets before they arrive by ensuring your portfolio includes steadier investments like Walmart, Realty Income, PepsiCo, and Verizon that can provide ballast during these more turbulent times. While they aren't risk-free investments, they should help lower your portfolio's overall volatility without giving up too much long-term upside potential.
Should you buy stock in Walmart right now?
Before you buy stock in Walmart, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walmart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 11, 2026.
Matt DiLallo has positions in PepsiCo, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

How to Beat a Choppy Market With 4 Steady Stocks

Key Points
AST generates all of its revenue from defense contracts and commercial prepayments rather than continuous commercial contracts.
That could change next year when its constellation grows to 45 satellites.
AST SpaceMobile (NASDAQ: ASTS) is a tough stock to value. The developer of low Earth orbit (LEO) satellites has a market cap of $15.3 billion, which is 90.5 times its expected 2026 revenue. It had more than $3.7 billion in total liquidity at the end of June, but it doesn't generate any revenue from its commercial contracts.
So how should investors value AST SpaceMobile?
AST SpaceMobile's BlueBird satellites provide broadband cellular connections for government and commercial customers. It's successfully launched 13 of those satellites so far.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
AST SpaceMobile currently generates all of its revenue from government and defense contracts, as well as prepayments from AT&T, Verizon, and other telecom companies, rather than from its commercial satellite operations.
But next year, AST plans to expand its constellation to 45 satellites, enabling it to provide continuous direct-to-cell broadband coverage for its telecom customers. It's already working with over 60 carriers to reach more than 3 billion wireless subscribers, and it plans to eventually expand its constellation to more than 248 satellites to convert its backlog -- which reached $1.3 billion in its latest quarter -- into actual revenue.
If AST achieves those goals, analysts expect its revenue to surge more than tenfold from $169 million in 2026 to $1.73 billion in 2028. So, rather than valuing AST based on its near-term revenue, investors should value it for the future growth of its satellite constellation.
Should you buy stock in AST SpaceMobile right now?
Before you buy stock in AST SpaceMobile, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AST SpaceMobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 10, 2026.
Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

Verizon Communications Inc.

Options Strategies