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Verizon Communications (VZ) Gains As Market Dips: What You Should Know

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In the latest trading session, Verizon Communications (VZ) closed at $50.50, marking a +0.02% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Heading into today, shares of the largest U.S. cellphone carrier had lost 0.65% over the past month, outpacing the Computer and Technology sector's loss of 4.74% and the S&P 500's loss of 5.08% in that time.

Investors will be hoping for strength from Verizon Communications as it approaches its next earnings release, which is expected to be July 22, 2022. In that report, analysts expect Verizon Communications to post earnings of $1.34 per share. This would mark a year-over-year decline of 2.19%. Our most recent consensus estimate is calling for quarterly revenue of $33.76 billion, down 0.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $136.67 billion, which would represent changes of 0% and +2.29%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. Verizon Communications currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 9.36. For comparison, its industry has an average Forward P/E of 27.26, which means Verizon Communications is trading at a discount to the group.

We can also see that VZ currently has a PEG ratio of 2.34. 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. Wireless National stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% 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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