Verizon Communications (VZ) Stock Sinks As Market Gains: What You Should Know
Verizon Communications (VZ) closed the most recent trading day at $57.63, moving -1.12% from the previous trading session. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the largest U.S. cellphone carrier had gained 1.57% over the past month, outpacing the Computer and Technology sector's gain of 0.35% and lagging the S&P 500's gain of 2.08% in that time.
Investors will be hoping for strength from VZ as it approaches its next earnings release. The company is expected to report EPS of $1.20, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.41 billion, up 0.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.75 per share and revenue of $131.85 billion. These totals would mark changes of +0.85% and +0.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for VZ. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.05% higher. VZ is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note VZ's current valuation metrics, including its Forward P/E ratio of 12.27. For comparison, its industry has an average Forward P/E of 18.55, which means VZ is trading at a discount to the group.
Also, we should mention that VZ has a PEG ratio of 2.89. 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. The Wireless National industry currently had an average PEG ratio of 1.74 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 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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