StockStory Analysts Advise Avoiding Verizon (VZ) Shares After Q1, Pointing to Subpar Sales Growth and Eroding Returns

StockStory analysts recommended against holding Verizon Communications (VZ) shares following the company’s first-quarter earnings, citing persistent weak fundamentals. The stock, trading at $44.98 as of June 5, 2026, faces headwinds from tepid revenue growth and declining returns on invested capital. Verizon’s sales compounded at a 1.4% annual growth rate over the past five years, lagging benchmarks. Its free cash flow margin averaged 14.9% over the last two years, below peers and constraining capital returns. ROIC has fallen by an average of 1.8 percentage points per year recently, signaling limited profitable reinvestment opportunities. At a forward price-to-sales ratio of 1.4 times, the firm deemed the stock unattractive relative to better opportunities elsewhere.