Verizon Communications (VZ) has come under fresh scrutiny after its removal from the Dow Jones Industrial Average, as well as a selloff tied to restructuring charges and a new joint venture with BT Group, alongside rising satellite competition.

Verizon Communications shares have retreated in recent weeks, with a 30 day share price return of down 11.09% and a 90 day share price return of down 13.85%. This contrasts with a year to date share price return of 5.03% and a 3 year total shareholder return of 40.28%, suggesting recent momentum has cooled despite a stronger longer term record.

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With Verizon Communications trading around $42.56 and carrying a high value score, recent weakness, restructuring charges and fresh satellite competition set up a simple question for investors: is this a mispriced cash generator, or is the market already discounting future growth?

Most Popular Narrative: 15.7% Undervalued

According to the most followed narrative, Verizon Communications has a fair value of $50.50 based on discounted cash flows, compared with the recent share price of $42.56. That gap reflects a view that the market is not fully pricing the company’s projected cash generation and profitability.

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. My goal is to invest a maximum of $5,000 within one to two years. That brings me to 50 companies in which I have invested, with a current portfolio value of $200,000, which has yielded a return of over 15% per year over the past 5 years, partly due to reinvesting all dividends.

The narrative builds that $50.50 fair value on a specific mix of revenue growth assumptions, projected margins and a future earnings multiple that might surprise you.

Result: Fair Value of $50.50 (UNDERVALUED)

However, Verizon Communications still faces pressure from restructuring charges and rising satellite competition, which could squeeze cash generation and challenge the 15.7% undervaluation case.

Next Steps

With sentiment split between recent weakness and longer term confidence in Verizon Communications, this is a good time to review the underlying data yourself and act before views shift again. You can start with the 4 key rewards and 2 important warning signs

Looking for more investment ideas beyond Verizon Communications?

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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.