Verizon Communications (VZ) Stock Sinks As Market Gains: What You Should Know
Verizon Communications (VZ) closed at $55.87 in the latest trading session, marking a -0.76% move from the prior day. This move lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 2.51%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 1.04% over the past month. This has lagged the Computer and Technology sector's gain of 5.23% and the S&P 500's gain of 3.73% in that time.
VZ will be looking to display strength as it nears its next earnings release, which is expected to be July 24, 2020. The company is expected to report EPS of $1.16, down 5.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.91 billion, down 6.74% from the year-ago period.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.76 per share and revenue of $127.12 billion. These results would represent year-over-year changes of -1.04% and -3.6%, respectively.
Any recent changes to analyst estimates for VZ should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. 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 11.84. This represents a discount compared to its industry's average Forward P/E of 28.23.
Investors should also note that VZ has a PEG ratio of 3.96 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 2.92 based on yesterday's closing prices.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.