Verizon (VZ): Reassessing Valuation After a Period of Sideways Share Price Performance

Verizon Communications (VZ) has been drifting sideways lately, with the stock roughly flat over the past month after a weaker past 3 months. That muted price action sets up an interesting value discussion.

See our latest analysis for Verizon Communications.

Over the past year, Verizon’s share price has mostly ground sideways as investors weigh modest revenue and net income growth against ongoing 5G and fixed wireless investments. A slightly positive 1 year total shareholder return hints that income and dividends still underpin the story more than momentum.

If you are reassessing Verizon’s role in your portfolio, this could also be a good moment to see how it stacks up against other major aerospace and defense stocks that may be driving steadier long term returns.

With shares trading below analyst targets but only modest growth on display, investors face a familiar Verizon puzzle: is this a solid value entry point, or is the market already baking in all the future upside?

Most Popular Narrative: 16% Undervalued

With Verizon Communications last closing at $39.92 against a narrative fair value near the mid 40s, the valuation case leans firmly toward upside potential if the projections hold.

The rapid expansion of fixed wireless access (FWA) and fiber broadband, as evidenced by accelerating subscriber growth (5M+ FWA subscribers, robust broadband net adds, and the pending Frontier acquisition), positions Verizon to capitalize on surging demand for high-quality home and business connectivity as more devices, smart homes, and bandwidth-intensive applications proliferate, supporting future service revenue and ARPU growth.

Read the complete narrative.

Curious how modest top line growth, rising margins, and a future earnings multiple come together to support that higher value, and what hinges on 2028 performance? Dive into the full narrative to see the specific assumptions powering this pricing story.

Result: Fair Value of $47.53 (UNDERVALUED)

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

However, this upside case still hinges on disciplined 5G and fiber execution, as well as on managing heavy debt without squeezing margins or free cash flow.

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

Build Your Own Verizon Communications Narrative

If you want to dig into the numbers yourself or challenge these assumptions, you can quickly build a personalized Verizon outlook in under three minutes: 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.

Looking for more investment ideas?

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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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