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

Zacks Equity Research

Verizon Communications (VZ) closed at $61.49 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.1%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 3.01% over the past month. This has outpaced the Computer and Technology sector's gain of 2.71% and the S&P 500's gain of 1.82% in that time.

Investors will be hoping for strength from VZ as it approaches its next earnings release. The company is expected to report EPS of $1.16, up 3.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.44 billion, up 0.46% from the year-ago period.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.83 per share and revenue of $131.56 billion. These results would represent year-over-year changes of +2.55% and +0.53%, respectively.

Any recent changes to analyst estimates for VZ should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. VZ is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, VZ currently has a Forward P/E ratio of 12.67. This represents a discount compared to its industry's average Forward P/E of 13.09.

It is also worth noting that VZ currently has a PEG ratio of 3.94. 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. Wireless National stocks are, on average, holding a PEG ratio of 3.19 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 68, which puts it in the top 27% 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.

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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