Verizon Communications (VZ) is back in focus after announcing a collaboration with BMW Group and KDDI that embeds Verizon’s 5G and LTE networks as the connectivity layer in all new BMW Group vehicles sold in the United States.

Despite the BMW and KDDI collaboration and other recent alliances with BT Group and Aduna, Verizon Communications’ share price has eased, with a 30 day share price return of 12.45% and a year to date gain of 3.95%, while the 3 year total shareholder return of 51.44% points to stronger longer term momentum.

If you are interested in how connectivity and infrastructure themes play out beyond Verizon, it could be worth reviewing our screener of AI infrastructure related stocks. You can start with 52 AI infrastructure stocks.

After a strong 3 year total shareholder return and a recent pullback, Verizon Communications sits at an interesting crossroads. Is most of the easy upside already reflected in the price, or does the current valuation still leave meaningful room ahead?

Most Popular Narrative: 16.6% Undervalued

Compared with Verizon Communications’ last close at $42.12, the most followed narrative pegs fair value at $50.50, which frames the current pullback in a different light.

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!

The fair value hinges on a clear earnings path, paired with steady revenue assumptions and firm margins. Curious which levers matter most in this Verizon Communications narrative.

Result: Fair Value of $50.50 (UNDERVALUED)

However, Verizon Communications still faces risks, including weaker share price momentum in the past 30 and 90 days and potential pressure if earnings or margins soften.

Another View: Verizon Communications Through the P/E Lens

The user narrative paints Verizon Communications as 16.6% undervalued at a fair value of $50.50, but the earnings multiple tells a more cautious story. At a P/E of 10.1x, Verizon trades richer than its direct peers at 8.7x, even though it sits well below the broader global telecom average of 17x.

The fair ratio for Verizon is 14.3x, which is materially higher than today’s 10.1x. That gap suggests the market could move closer to that fair ratio over time, yet the premium to peers introduces valuation risk if sector sentiment cools. Which signal do you trust more when you put real money to work?

Next Steps

With mixed signals around Verizon Communications, it helps to move past headlines and spend a few minutes with the underlying data yourself. To weigh both the concerns and the potential on your own terms, start by reviewing the full picture of 4 key rewards and 2 important warning signs

Looking for more investment ideas beyond Verizon Communications?

If Verizon Communications has you thinking more broadly about your portfolio, now is the time to widen the lens and see what else stands out on the data.

• Spot fresh potential in smaller companies before they hit the spotlight by checking out screener containing 19 high quality undiscovered gems.
• Strengthen your income stream with businesses that focus on paying shareholders consistently through 9 dividend fortresses.
• Prioritize resilience and sleep a little easier at night by scanning for companies in 78 resilient stocks with low risk scores.

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.