Verizon Communications (VZ) Dips More Than Broader Markets: What You Should Know
Verizon Communications (VZ) closed at $34.30 in the latest trading session, marking a -1.61% move from the prior day. This change lagged the S&P 500's 0.42% loss on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 7.16% over the past month. This has outpaced the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 1.02% in that time.
Investors will be hoping for strength from Verizon Communications as it approaches its next earnings release. On that day, Verizon Communications is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $33.47 billion, down 2.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $133.57 billion, which would represent changes of -8.69% and -2.39%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Verizon Communications is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Verizon Communications has a Forward P/E ratio of 7.37 right now. This represents a discount compared to its industry's average Forward P/E of 10.44.
Investors should also note that VZ has a PEG ratio of 2.11 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Wireless National stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report