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    Verizon Communications (VZ) Faces A Q3 Test Following SpaceX Competition And Undervalued View

    Simply Wall St·10/26/2026 06:25:05
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    Verizon Communications (VZ) heads into its Q3 report with the market looking for about 2.8% year on year revenue growth, while satellite rivals like SpaceX push harder into US wireless and regulatory debates intensify.

    Recent price action has been mixed. The share price is down about 5.1% over the past month and 7.3% over 90 days, yet Verizon Communications still carries a 10.2% year to date share price gain and a 21.4% total shareholder return over 1 year. This suggests earlier momentum has cooled as investors weigh Q3 earnings, new product moves such as Straight Talk’s richer 5G plans, early 6G testing milestones and fresh fixed income exchange offers against rising competitive pressure from satellite entrants.

    Scan how Verizon Communications stacks up against other large telecoms and wireless players using a curated set of 29 high quality undervalued stocks that pair resilient cash generation with firmer balance sheets.

    After Verizon Communications’ strong 1 year run and recent pullback, the choice is clear: Does it make more sense to add exposure now, or wait for a cheaper entry as Q3 and competition from SpaceX play out?

    Most Popular Narrative: 11.6% Undervalued

    On the widest followed narrative, Verizon Communications is framed as worth $50.50 a share, compared with the recent $44.66 close. That gap sets up a story where the telecom giant is treated as modestly undervalued rather than priced for perfection.

    I was looking for a large-cap company for diversification in my portfolio that has the strength to grow in the coming years. Furthermore, the debt-to-equity ratio must remain responsible or under control. The PEG (around or >1) and EPS (>1) ratios must be good, as well as the payout ratio (<75%), and the company must pay dividends, which I would prefer to see grow somewhat annually.

    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.

    See why 40 investors see Verizon Communications as 12% undervalued.

    Result: Fair Value of $50.50 (UNDERVALUED)

    Still, two pressure points could challenge that undervalued Verizon Communications story: intensifying satellite competition and any shift in regulatory stance on wireless spectrum.

    Find out about the key risks to this Verizon Communications narrative.

    Next Steps

    Mixed signals around Verizon Communications can feel confusing, so treat this as a prompt to review the underlying numbers yourself and move decisively once you are comfortable. To balance the concern around at least one risk against the optimism around at least one potential reward, go straight to the 4 key rewards and 1 important warning sign.

    Looking for more Verizon Communications investment ideas?

    If Verizon Communications feels like just one piece of your portfolio puzzle, broaden your opportunity set now with focused screens built for different strengths.