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

Zacks Equity Research

Verizon Communications (VZ) closed the most recent trading day at $60.21, moving -0.13% from the previous trading session. This move lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 6.18% over the past month. This has outpaced the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 3.23% in that time.

Investors will be hoping for strength from VZ as it approaches its next earnings release. In that report, analysts expect VZ to post earnings of $1.24 per share. This would mark year-over-year growth of 1.64%. Our most recent consensus estimate is calling for quarterly revenue of $32.73 billion, up 0.38% from the year-ago period.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $131.36 billion. These results would represent year-over-year changes of +2.12% and +0.38%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% 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 12.54 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.56.

It is also worth noting that VZ currently has a PEG ratio of 2.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VZ's industry had an average PEG ratio of 2.38 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% 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.

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


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