Verizon Momentum Stock: Buy Signal for Investors?

Verizon

The Verizon momentum stock narrative is gaining traction as investors increasingly rely on quantitative tools like the Zacks Rank and Zacks Style Scores to guide their decisions. For both new and experienced investors, confidence in the market often comes from data-driven strategies, and Zacks Premium has become a widely used research platform for identifying high-probability opportunities.

Zacks Premium provides access to daily updates such as the Zacks Rank, Zacks Industry Rank, equity research reports, premium stock screens, and the well-known Zacks Style Scores. These tools are designed to help investors filter thousands of stocks and focus on companies with the strongest potential to outperform the market over the short to medium term.

At the center of this framework are the Zacks Style Scores, which evaluate stocks based on three core investing styles: value, growth, and momentum. Together with the Zacks Rank, these scores form a structured approach to identifying stocks with favorable trends, strong fundamentals, and positive earnings momentum.

Understanding Style Scores and Market Performance

The Zacks Style Scores assign each stock a grade from A to F across multiple categories, making it easier to identify companies with the best probability of near-term outperformance. The Value Score highlights stocks trading below their perceived intrinsic value using metrics such as price-to-earnings, price-to-sales, and cash flow ratios. The Growth Score focuses on financial strength and forward-looking performance, including revenue growth, earnings projections, and cash flow trends.

For trend-focused investors, the Momentum Score is especially important. Momentum investing follows the principle that stocks moving strongly in one direction tend to continue in that direction. Factors such as short-term price changes and upward earnings estimate revisions are used to identify favorable entry points.

These scores are combined into the VGM Score (Value, Growth, Momentum), which provides a comprehensive rating that blends all three styles. When used alongside the Zacks Rank, investors can narrow down large stock universes into a more manageable list of high-probability candidates.

This systematic approach is particularly relevant when analyzing a Verizon momentum stock setup, where trend strength and earnings revisions play a central role in the investment thesis.

How Zacks Rank Enhances Momentum Strategies

The Zacks Rank is a proprietary model based primarily on earnings estimate revisions. Stocks with rising earnings expectations tend to outperform the market, which is why the Zacks system emphasizes analyst forecast changes as a key signal.

Historically, stocks ranked #1 (Strong Buy) by Zacks have delivered significantly higher average annual returns than the broader market. However, with hundreds of stocks often carrying top rankings at any given time, selection can become overwhelming. This is where the Style Scores become critical.

By combining high Zacks Ranks (#1 or #2) with strong Style Scores (A or B), investors increase the probability of selecting stocks with both strong fundamentals and positive price trends. Even stocks with a #3 (Hold) rank can still be attractive if their Style Scores indicate strong momentum and favorable growth or value characteristics.

This integrated system is what makes momentum-based strategies more disciplined and less speculative—especially in volatile market environments.

Verizon Communications as a Momentum Play

Verizon Communications Inc. (NYSE:VZ) has emerged as a notable Verizon momentum stock candidate within this framework. Headquartered in New York, Verizon is one of the largest telecommunications companies in North America, providing wireless services, broadband, data networking, and enterprise communication solutions.

Through major acquisitions—including MCI Corporation and Alltel Wireless—Verizon built a dominant position in the U.S. telecom market, surpassing AT&T Inc. (NYSE:T) as the largest wireless carrier by subscriber base. Today, it serves millions of customers nationwide and remains a core player in the communications infrastructure sector.

From a quantitative perspective, Verizon currently holds a #3 (Hold) rating on the Zacks Rank, but its Style Scores paint a more compelling picture. The stock carries a VGM Score of A and a Momentum Style Score of A, signaling strong trend characteristics despite the neutral rank.

Over the past four weeks, Verizon shares have posted notable gains, reflecting positive price momentum and renewed investor interest. This recent performance is reinforced by analyst behavior: multiple earnings estimate revisions have moved higher in recent months, pushing consensus forecasts upward for fiscal 2026.

Earnings surprise history further supports this trend. Verizon has consistently delivered results above analyst expectations, reinforcing confidence in its operational stability and earnings reliability.

What the Verizon Momentum Stock Signal Means

The Verizon momentum stock setup highlights an important distinction between traditional long-term valuation investing and trend-based strategies. While Verizon may not currently rank as a top growth stock, its momentum indicators suggest favorable short-term to medium-term performance potential.

For momentum investors, rising prices, improving earnings estimates, and strong Style Scores matter more than long-term valuation metrics alone. Verizon fits this profile by combining stable fundamentals with improving market sentiment and positive price action.

For conservative investors, Verizon also offers defensive characteristics, including predictable cash flows and a mature business model. This dual appeal—stability plus momentum—makes (NYSE:VZ) attractive to a wide range of investor profiles.

Final Outlook for Verizon Momentum Stock Investors

The Verizon momentum stock story is not about explosive growth—it is about trend strength, earnings stability, and disciplined investing. Backed by strong Zacks Style Scores, upward earnings revisions, and recent price gains, Verizon stands out as a momentum-driven opportunity within the telecommunications sector.

While its Zacks Rank suggests neutrality, the combination of Momentum and VGM Scores of A positions Verizon as a stock worth monitoring closely. For investors using data-driven strategies, (NYSE:VZ) represents a compelling blend of defensive stability and bullish momentum—an uncommon but attractive combination in today’s market.

As market conditions evolve, Verizon’s ability to maintain earnings consistency and positive momentum will determine whether it remains a top momentum candidate or transitions back into a purely defensive holding.

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