In the latest trading session, Verizon Communications (VZ) closed at $57.22, marking a +0.69% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq lost 0.69%.
Investors will be hoping for strength from VZ as it approaches its next earnings release, which is expected to be July 24, 2020. On that day, VZ is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 5.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.08 billion, down 6.21% from the year-ago period.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.76 per share and revenue of $127.88 billion. These results would represent year-over-year changes of -1.04% and -3.02%, respectively.
Investors should also note any recent changes to analyst estimates for VZ. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VZ currently has a Zacks Rank of #3 (Hold).
In terms of valuation, VZ is currently trading at a Forward P/E ratio of 11.94. This represents a discount compared to its industry's average Forward P/E of 21.49.
Also, we should mention that VZ has a PEG ratio of 4.22. 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 1.89 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 89, which puts it in the top 36% 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.
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
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