A Fresh Look at Verizon (VZ) Valuation as Shares Post Modest Weekly Gain

Verizon Communications (VZ) shares have edged slightly higher this week, posting a mild gain of almost 2% over the past seven days. Investors are keeping an eye on the telecommunications giant’s steady performance as industry trends continue to shift.

See our latest analysis for Verizon Communications.

Verizon’s share price has held steady this year, inching up just under 1% year-to-date. Its 3-year total shareholder return is an impressive 40%, showing that long-term investors have been rewarded even as recent momentum has softened. While news flow has been relatively quiet, the market’s cautious optimism reflects a balance between consistent performance and sector challenges.

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With Verizon currently trading about 20% below the average analyst price target and showing moderate but steady growth, investors are left to wonder if the stock remains undervalued or if future gains have already been fully priced in.

Most Popular Narrative: 16.6% Undervalued

With Verizon’s last close at $40.55, the narrative sets fair value over $8 higher, signaling further upside beyond the recent market price. The stage is set by a belief that foundational growth and operational shifts will reinforce Verizon’s lead in the evolving connectivity landscape.

Ongoing cost optimization, driven by successful voluntary separation programs, copper network decommissioning, AI-powered process efficiencies, and operational streamlining, continues to improve operating leverage and expand EBITDA and free cash flow, underpinning sustainable future earnings growth.

Read the complete narrative.

Curious how disciplined cost control and massive network upgrades feed into a higher price target? Fractional growth assumptions and margin expansion could be the hidden fuel driving this fair value. Uncover which specific metrics and management strategies could power Verizon’s next leap. There is more beneath the surface than meets the eye.

Result: Fair Value of $48.61 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent subscriber churn and elevated investment costs could quickly reshape expectations and challenge long-term growth, even as optimism lingers.

Find out about the key risks to this Verizon Communications narrative.

Build Your Own Verizon Communications Narrative

Feel like you see things differently or want to dive deeper into the numbers? You can shape your own view and draw conclusions in just a few minutes. Do it your way

A great starting point for your Verizon Communications research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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