Verizon Communications (VZ) Outpaces Stock Market Gains: What You Should Know
The most recent trading session ended with Verizon Communications (VZ) standing at $39.93, reflecting a +1.11% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.82%.
Heading into today, shares of the largest U.S. cellphone carrier had lost 2.47% over the past month, lagging the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 1.76% in that time.
The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. The company is scheduled to release its earnings on April 22, 2024. The company is predicted to post an EPS of $1.12, indicating a 6.67% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $33.44 billion, showing a 1.61% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.59 per share and a revenue of $135.65 billion, signifying shifts of -2.55% and +1.25%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. Verizon Communications is currently a Zacks Rank #3 (Hold).
Looking at valuation, Verizon Communications is presently trading at a Forward P/E ratio of 8.6. This represents a discount compared to its industry's average Forward P/E of 17.81.
We can additionally observe that VZ currently boasts a PEG ratio of 3.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Wireless National industry had an average PEG ratio of 2.53 as trading concluded yesterday.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
