Verizon Communications (VZ) closed at $55.04 in the latest trading session, marking a -0.36% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 0.86%.
Coming into today, shares of the largest U.S. cellphone carrier had lost 4.91% in the past month. In that same time, the Computer and Technology sector gained 5.89%, while the S&P 500 lost 0.3%.
Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. This is expected to be July 24, 2020. The company is expected to report EPS of $1.14, down 7.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.83 billion, down 6.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $127.25 billion. These totals would mark changes of -1.46% and -3.5%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for VZ. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. VZ is currently a Zacks Rank #4 (Sell).
In terms of valuation, VZ is currently trading at a Forward P/E ratio of 11.65. This valuation marks a discount compared to its industry's average Forward P/E of 26.09.
It is also worth noting that VZ currently has a PEG ratio of 4.11. 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. VZ's industry had an average PEG ratio of 2.92 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 63, which puts it in the top 25% 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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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
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