Event context and recent stock performance

Verizon Communications (VZ) has been drawing fresh attention after recent trading left the stock around $47.09, with a 1 day decline of about 0.7% and a 2% pullback over the past week.

While the share price has edged lower in the past month, Verizon Communications still carries a 16.21% year to date share price return and a 3 year total shareholder return of 53.28%, suggesting momentum has been building over the longer term.

If Verizon’s recent move has you thinking about where else capital could work harder, this is a good moment to hunt for 36 power grid technology and infrastructure stocks as another angle on the communications and infrastructure theme.

With Verizon trading around $47.09, sitting roughly 10% below the average analyst price target and flagged by some models as having a large intrinsic discount, you have to ask: is there real upside here, or is the market already baking in its future growth?

Most Popular Narrative: 25.3% Overvalued

Compared with Verizon’s last close at $47.09, the most followed narrative pegs fair value at $37.59, so it frames the current price as rich.

Verizon, for instance, had been on my wish list for a very long time, but I kept putting it off due to conflicting reports about the company. At the time (2023), I was able to buy it for approximately $31. Eventually, I did purchase it this week (May 5, 2026) at $47.50 because the company is showing strong figures, including for the coming years. I bought a very small batch, 5 shares. And yes, the psychology of the stock market: if I buy, it drops! I will wait and see for now, and if it drops further later, I will just buy another small amount to maintain the average purchase price. This purchasing method has already saved me a lot of money over the past few years!

Curious what sits behind that $37.59 fair value, the assumed growth in revenue, margins and future earnings multiple tell a very specific return story.

Result: Fair Value of $37.59 (OVERVALUED)

However, this overvaluation story could be challenged if Verizon’s $139.1b revenue base or $17.3b net income face pressure, or if interest rates keep investor appetite muted.

Another View: Cash Flows Point the Other Way

The user narrative sees Verizon as about 25% overvalued at a fair value of $37.59, but our DCF model lands in a very different place, with a future cash flow value of $143.73 per share that implies the stock is trading at a large discount. For you, that clash raises a simple question: which story feels more realistic?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Verizon Communications for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Seeing both risks and rewards in the story so far, it makes sense to review the details yourself and decide promptly where you stand, starting with the 3 key rewards and 2 important warning signs.

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.