In the latest trading session, Verizon Communications (VZ) closed at $41.10, marking a -0.48% move from the previous day. This change lagged the S&P 500's daily loss of 0.41%.
Heading into today, shares of the largest U.S. cellphone carrier had lost 7.27% over the past month, outpacing the Computer and Technology sector's loss of 9.08% and lagging the S&P 500's loss of 5.13% in that time.
Verizon Communications will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.30, down 7.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.68 billion, up 2.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.22 per share and revenue of $136.29 billion, which would represent changes of -3.15% and +2%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Verizon Communications currently has a Forward P/E ratio of 7.91. This represents a discount compared to its industry's average Forward P/E of 24.59.
Meanwhile, VZ's PEG ratio is currently 1.96. 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. The Wireless National was holding an average PEG ratio of 1.96 at yesterday's closing price.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
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