Verizon Communications (VZ) Rises As Market Takes a Dip: Key Facts

The most recent trading session ended with Verizon Communications (VZ) standing at $40.35, reflecting a +0.1% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 1.02%. On the other hand, the Dow registered a loss of 1.04%, and the technology-centric Nasdaq decreased by 1.65%.

The largest U.S. cellphone carrier's shares have seen a decrease of 2.59% over the last month, not keeping up with the Computer and Technology sector's gain of 3.72% and the S&P 500's gain of 3.64%.

Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. On that day, Verizon Communications is projected to report earnings of $1.12 per share, which would represent a year-over-year decline of 6.67%. Meanwhile, our latest consensus estimate is calling for revenue of $33.44 billion, up 1.61% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $4.59 per share and a revenue of $135.65 billion, demonstrating changes of -2.55% and +1.25%, respectively, from the preceding year.

It is also important to note the 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. Verizon Communications presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Verizon Communications is currently being traded at a Forward P/E ratio of 8.78. This denotes a discount relative to the industry's average Forward P/E of 19.43.

Meanwhile, VZ's PEG ratio is currently 3.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless National industry currently had an average PEG ratio of 2.49 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 159, this industry ranks in the bottom 37% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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