U.S. markets open in 7 hours 3 minutes
  • S&P Futures

    3,826.50
    +1.00 (+0.03%)
     
  • Dow Futures

    30,940.00
    +7.00 (+0.02%)
     
  • Nasdaq Futures

    11,689.50
    +15.25 (+0.13%)
     
  • Russell 2000 Futures

    1,739.50
    +1.20 (+0.07%)
     
  • Crude Oil

    111.51
    -0.25 (-0.22%)
     
  • Gold

    1,821.60
    +0.40 (+0.02%)
     
  • Silver

    20.80
    -0.01 (-0.03%)
     
  • EUR/USD

    1.0498
    -0.0028 (-0.26%)
     
  • 10-Yr Bond

    3.2060
    0.0000 (0.00%)
     
  • Vix

    28.36
    +1.41 (+5.23%)
     
  • GBP/USD

    1.2186
    +0.0001 (+0.01%)
     
  • USD/JPY

    135.9220
    -0.2060 (-0.15%)
     
  • BTC-USD

    20,113.21
    -725.38 (-3.48%)
     
  • CMC Crypto 200

    434.83
    -15.23 (-3.38%)
     
  • FTSE 100

    7,323.41
    +65.09 (+0.90%)
     
  • Nikkei 225

    26,804.60
    -244.87 (-0.91%)
     

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

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Verizon Communications (VZ) closed at $49.16 in the latest trading session, marking a -0.87% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.46%.

Heading into today, shares of the largest U.S. cellphone carrier had gained 1.12% over the past month, outpacing the Computer and Technology sector's loss of 8.38% and the S&P 500's loss of 6.69% in that time.

Wall Street will be looking for positivity from Verizon Communications as it approaches its next earnings report date. This is expected to be July 22, 2022. On that day, Verizon Communications is projected to report earnings of $1.35 per share, which would represent a year-over-year decline of 1.46%. Meanwhile, our latest consensus estimate is calling for revenue of $33.58 billion, down 0.54% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $136.43 billion, which would represent changes of 0% and +2.11%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Verizon Communications. These revisions help to show the ever-changing nature of 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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 9.2. Its industry sports an average Forward P/E of 27.94, so we one might conclude that Verizon Communications is trading at a discount comparatively.

Investors should also note that VZ has a PEG ratio of 2.56 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 1.81 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 105, putting it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.