Verizon (VZ) Valuation: Assessing Strategic Fiber Investments, Business Partnerships, and Growth Momentum After Recent Developments

Verizon Communications has made several strategic moves recently, including expanding its fiber infrastructure through new agreements and strengthening business partnerships with KPMG and AWS. These efforts highlight the company’s ongoing transformation and focus on long-term growth opportunities.

See our latest analysis for Verizon Communications.

After a string of growth-focused moves, including new fiber buildouts, big-ticket client partnerships, and reaffirmed revenue targets, Verizon’s momentum appears to be rebuilding. While the 5.7% total return over the past year outpaces recent share price movement, its three-year total shareholder return of nearly 28% points to more staying power than the latest $40.03 share price alone suggests.

If Verizon’s push into next-generation connectivity has you curious, it’s worth expanding your search and discovering fast growing stocks with high insider ownership.

The question now is whether Verizon’s stock still trades at a discount given its recent gains and growing momentum, or if the market is already anticipating its next chapter and future growth. Could this be a real buying opportunity?

Most Popular Narrative: 15.8% Undervalued

Verizon’s most widely followed narrative sees a fair value clearly above today’s closing price, indicating investor optimism and an opportunity that the broader market might be missing. With future cash flows discounting risks but pricing in optimistic forecasts, the gap draws attention to what could drive further upside.

Digital transformation among enterprises and increased remote work are sustaining strong demand for Verizon's private network and AI-enabled connectivity solutions, with an expanding $2B+ sales funnel and landmark deals indicating growing adoption of advanced use cases like edge computing. This is creating new high-margin enterprise revenue streams and enhancing overall net margins.

Read the complete narrative.

Want to know which financial levers power this premium valuation? The narrative’s entire bullish case hinges on bold profit forecasts and margin expansion. Find out which surprising assumptions could send the story in either direction and discover all the details in the full perspective.

Result: Fair Value of $47.53 (UNDERVALUED)

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

However, execution missteps during Verizon’s leadership transition or prolonged high debt costs could challenge the bullish case and disrupt current momentum.

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

Build Your Own Verizon Communications Narrative

If you see things differently or want to uncover your own perspective, you can build a complete Verizon narrative for yourself in just a few minutes. Do it your way.

A great starting point for your Verizon Communications research is our analysis highlighting 5 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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