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Verizon Communications (VZ) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Verizon Communications (VZ) closed at $59.59 in the latest trading session, marking a -0.57% move from the prior day. This move lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the largest U.S. cellphone carrier had lost 0.83% over the past month, lagging the Computer and Technology sector's loss of 0.36% and outpacing the S&P 500's loss of 0.91% in that time.

Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. This is expected to be October 25, 2019. The company is expected to report EPS of $1.24, up 1.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.75 billion, up 0.45% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.82 per share and revenue of $131.39 billion. These totals would mark changes of +2.34% and +0.41%, respectively, from last year.

Any recent changes to analyst estimates for VZ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.15% higher. VZ is currently a Zacks Rank #3 (Hold).

Looking at its valuation, VZ is holding a Forward P/E ratio of 12.44. This represents a discount compared to its industry's average Forward P/E of 14.11.

We can also see that VZ currently has a PEG ratio of 2.98. 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. The Wireless National industry currently had an average PEG ratio of 2.37 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 101, putting it in the top 40% 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.

To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.

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