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

·3 min read

Verizon Communications (VZ) closed at $42.76 in the latest trading session, marking a +1.23% move from the prior day. This move outpaced the S&P 500's daily gain of 1.06%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.09%.

Heading into today, shares of the largest U.S. cellphone carrier had lost 6.45% over the past month, lagging the Computer and Technology sector's loss of 4.33% and the S&P 500's loss of 1.14% in that time.

Wall Street will be looking for positivity from Verizon Communications as it approaches its next earnings report date. This is expected to be October 21, 2022. On that day, Verizon Communications is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 9.22%. Meanwhile, our latest consensus estimate is calling for revenue of $33.69 billion, up 2.36% from the prior-year quarter.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $5.20 per share and revenue of $136.27 billion. These results would represent year-over-year changes of -3.53% and +1.99%, respectively.

Investors should also note any recent changes to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 8.13. This valuation marks a discount compared to its industry's average Forward P/E of 24.32.

We can also see that VZ currently has a PEG ratio of 2.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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 industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.

To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.


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