SpaceX’s plan to build a terrestrial mobile network using its Starlink satellites and new ground infrastructure has put Verizon Communications (VZ) in sharper focus for investors watching potential shifts in U.S. wireless competition.

The latest SpaceX announcement has added pressure in the near term, with Verizon Communications’ 1-day share price return declining 0.9% and the 7-day share price return down 1.6%. However, the 30-day share price return of 10.5% alongside a 1-year total shareholder return of 17.2% points to momentum that has been stronger over a longer window despite recent competitive headlines.

If SpaceX’s push into terrestrial mobile has you thinking more broadly about connectivity trends, it may be worth scanning for other potential beneficiaries or competitors through the 37 power grid technology and infrastructure stocks

After the recent pop in Verizon Communications’ share price and fresh questions about long term wireless competition, the next step is to see whether the current valuation still offers an appealing skew between potential upside and downside for new buyers.

Most Popular Narrative: 8% Undervalued

According to the most followed narrative, Verizon Communications has a fair value of $50.50 compared with the last close of $46.47, which frames the current pricing debate for investors weighing the SpaceX headline against longer term assumptions.

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.

Curious what earnings, revenue growth and margin profile sit behind that $50.50 fair value for Verizon Communications? The narrative from Silvester leans on a specific growth glide path and steady profitability that do not show up in a simple 1 year chart. The underlying model blends those assumptions into a discounted cash flow view that contrasts sharply with recent share price volatility. The full breakdown shows exactly which inputs do the heavy lifting in the valuation.

Result: Fair Value of $50.50 (UNDERVALUED)

However, investors still need to watch for higher competitive pressure in U.S. wireless and any change in Verizon Communications’ profitability that challenges the current valuation story.

Another View on Verizon Communications Valuation

The user narrative points to Verizon Communications as 8% undervalued at a fair value of $50.50. However, our DCF model estimates the future cash flow value at $164.85 per share, which is far above the current $46.47 price and implies a much larger potential gap.

This raises a practical question for you as an investor. Is the more conservative $50.50 narrative closer to how the market will actually treat Verizon Communications, or does the DCF view highlight a margin of safety that may be easy to overlook when headlines focus on short term competition?

Next Steps

With both potential risks and rewards in focus for Verizon Communications, it helps to move quickly and pressure test the story against the data yourself. Start by weighing the 3 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Verizon Communications?

If you stop with Verizon Communications, you could miss other opportunities that fit your goals. Use the Simply Wall St Screener to quickly spot fresh ideas worth investigating.

• Target steadier cash generators by checking companies in the 79 resilient stocks with low risk scores that may suit a more defensive approach.
• Hunt for potential value opportunities by scanning the 51 high quality undervalued stocks and see which stocks currently trade below their assessed worth.
• Build a stronger core in your portfolio by focusing on companies in the solid balance sheet and fundamentals stocks screener (50 results) that pair financial strength with fundamentals.

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.