Verizon Communications (VZ) Gains But Lags Market: What You Should Know

In the latest trading session, Verizon Communications (VZ) closed at $39.81, marking a +1.66% move from the previous day. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.18%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 5.18% in the past month. In that same time, the Computer and Technology sector lost 7.96%, while the S&P 500 lost 6.15%.

Verizon Communications will be looking to display strength as it nears its next earnings release, which is expected to be October 21, 2022. In that report, analysts expect Verizon Communications to post earnings of $1.28 per share. This would mark a year-over-year decline of 9.22%. Meanwhile, our latest consensus estimate is calling for revenue of $33.74 billion, up 2.51% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.19 per share and revenue of $136.33 billion, which would represent changes of -3.71% and +2.03%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Verizon Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. 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 7.55 right now. This represents a discount compared to its industry's average Forward P/E of 22.65.

It is also worth noting that VZ currently has a PEG ratio of 1.82. 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. VZ's industry had an average PEG ratio of 1.88 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.

To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.

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