Verizon Communications (VZ) has made a series of consumer focused changes, including new Simplicity Plans that scrap activation and upgrade fees, a cashback loyalty program, and bundled mobility plus home services under unified billing.

Against this backdrop of new consumer offerings, Verizon Communications shares trade at US$46.73, with a 7 day share price return of 2.08% but a 90 day share price return that is down 5.77%. Over a longer stretch, the stock shows stronger momentum, with a year to date share price return of 15.33% and a 1 year total shareholder return of 19.18%. The 3 year total shareholder return of 59.71% and 5 year total shareholder return of 13.05% highlight how income and price moves have combined over time.

If you are comparing Verizon Communications with other income and infrastructure plays, it can help to widen the lens and review stocks tied to power networks and grid upgrades using the 34 power grid technology and infrastructure stocks

With Verizon Communications reporting annual revenue of US$139.1b, net income of US$17.3b, a long history of dividends and its shares trading at US$46.73, the key question is whether investors are seeing an undervalued income giant or a stock where the market is already pricing in future growth.

Most Popular Narrative: 7.5% Undervalued

Against Verizon Communications stock at $46.73, the most followed narrative points to a fair value of $50.50, suggesting the current price sits below that estimate.

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''ll wait and see for now, and if it drops further later, I''ll 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 fair value in this narrative leans heavily on steady revenue growth, firm profit margins and a future earnings multiple that assumes dependable cash generation from Verizon Communications. Want to see exactly how those assumptions stack together and what kind of growth path sits behind that target price?

Result: Fair Value of $50.50 (UNDERVALUED)

However, this Verizon Communications narrative could be challenged if revenue growth near 1.8% stalls or if profit margins come under pressure and weaken cash generation assumptions.

Next Steps

Given the mix of optimism and caution around Verizon Communications, it can help to act promptly, review the underlying data, and form your own takeaway using the 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Verizon Communications?

If you want to round out your view beyond Verizon Communications, use the Simply Wall Street Screener to spot other opportunities that could fit your goals.

• Target potential value opportunities by reviewing companies that screen as 44 high quality undervalued stocks and see how they compare with your existing holdings.
• Strengthen the income side of your portfolio by scanning for 9 dividend fortresses that may complement a stock like Verizon Communications.
• Reduce portfolio stress by focusing on 67 resilient stocks with low risk scores so you are not relying on just a few higher volatility positions.

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.