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Verizon Communications (VZ) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Verizon Communications (VZ) closed at $61.08, marking a -0.24% move from the previous day. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.44%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 3.22% over the past month. This has outpaced the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 1.51% in that time.

VZ will be looking to display strength as it nears its next earnings release. On that day, VZ is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 3.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.44 billion, up 0.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.83 per share and revenue of $131.56 billion, which would represent changes of +2.55% and +0.53%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for VZ. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.02% higher. VZ is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, VZ is holding a Forward P/E ratio of 12.67. For comparison, its industry has an average Forward P/E of 12.89, which means VZ is trading at a discount to the group.

We can also see that VZ currently has a PEG ratio of 3.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. VZ's industry had an average PEG ratio of 3.17 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
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Zacks Investment Research