Verizon (VZ): Assessing Valuation as Shares Show Modest Uptrend in 2024

Verizon Communications (VZ) shares have recently seen movement, catching the eye of investors looking for income and stability in the telecom sector. The company’s solid revenue base continues to anchor its long-term outlook.

See our latest analysis for Verizon Communications.

Verizon’s share price has inched up recently, putting in a 3.16% year-to-date price return. The stock’s one-year total shareholder return of 5.73% shows its ability to reward patient investors remains steady, even as short-term momentum fades.

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But with Verizon currently trading at a double-digit discount to analyst targets, does recent underperformance suggest hidden value, or is the market correctly anticipating slower growth ahead? Is there a real buying opportunity here?

Most Popular Narrative: 12.7% Undervalued

Compared to Verizon’s recent close, the most widely followed narrative attaches a notably higher fair value, suggesting substantial upside if narrative assumptions hold. The latest market price is firmly below where the narrative projects shares should trade in the future.

The scalable C-band 5G rollout (tracking ahead of schedule and targeting 80, 90% coverage) strengthens Verizon's competitive advantage in network quality and capacity, enabling premium offerings to meet increasing video, data, and streaming usage and supporting pricing power that could drive higher ARPU and improved margins.

Read the complete narrative.

What if Verizon’s valuation is powered by bold growth bets on wireless expansion and pricing potential? The most popular narrative is built on headline-grabbing future profit margins, ambitious top-line assumptions, and a belief in out-executing rivals. Want to see the numbers that could send this stock higher? Uncover the key projections driving this bullish target.

Result: Fair Value of $47.53 (UNDERVALUED)

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

However, continued industry price wars or weak growth from new tech such as private networks could cast doubt on Verizon’s ability to hit long-term targets.

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

Build Your Own Verizon Communications Narrative

If you want to go beyond consensus or see the story with your own analysis, it takes just a few minutes to build your personal narrative and see what insights emerge, starting with Do it your way.

A great starting point for your Verizon Communications research is our analysis highlighting 4 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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