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Verizon Communications (VZ) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Verizon Communications (VZ) closed at $57.96, marking a +1.36% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.38%.

Heading into today, shares of the largest U.S. cellphone carrier had gained 0.97% over the past month, outpacing the Computer and Technology sector's loss of 6.46% and the S&P 500's loss of 5.01% in that time.

Investors will be hoping for strength from VZ as it approaches its next earnings release. On that day, VZ is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 1.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.73 billion, up 0.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.80 per share and revenue of $131.37 billion, which would represent changes of +1.91% and +0.38%, respectively, from the prior year.

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. 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, 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 has moved 1.1% higher within the past month. VZ is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, VZ is holding a Forward P/E ratio of 11.91. This valuation marks a discount compared to its industry's average Forward P/E of 16.1.

Meanwhile, VZ's PEG ratio is currently 2.79. 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 was holding an average PEG ratio of 2.19 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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