Verizon Communications (VZ) Advances While Market Declines: Some Information for Investors
Verizon Communications (VZ) ended the recent trading session at $40.10, demonstrating a +0.43% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.55%.
The largest U.S. cellphone carrier's shares have seen a decrease of 5.98% over the last month, not keeping up with the Computer and Technology sector's gain of 2.65% and the S&P 500's gain of 3.98%.
Investors will be eagerly watching for the performance of Verizon Communications in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.12, marking a 6.67% fall compared to the same quarter of the previous year. 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.
Investors might also notice recent changes to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 8.7. This signifies a discount in comparison to the average Forward P/E of 18.44 for its industry.
It is also worth noting that VZ currently has a PEG ratio of 3.05. 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. By the end of yesterday's trading, the Wireless National industry had an average PEG ratio of 2.49.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
