Verizon Communications (VZ) Stock Sinks As Market Gains: What You Should Know
Verizon Communications (VZ) closed the most recent trading day at $57.18, moving -0.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the largest U.S. cellphone carrier had lost 2.32% over the past month, lagging the Computer and Technology sector's gain of 6.46% and the S&P 500's gain of 2.43% in that time.
Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. The company is expected to report EPS of $1.28, up 8.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.39 billion, up 6.37% from the prior-year quarter.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $5.09 per share and revenue of $133.46 billion. These results would represent year-over-year changes of +3.88% and +4.03%, respectively.
Investors might also notice recent changes to analyst estimates for VZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.19% higher. VZ is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that VZ has a Forward P/E ratio of 11.27 right now. This represents a discount compared to its industry's average Forward P/E of 48.5.
Investors should also note that VZ has a PEG ratio of 3.9 right now. 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 2.35 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 42, putting it in the top 17% 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.
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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.