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Verizon Communications (VZ) Stock Moves -0.04%: What You Should Know

Zacks Equity Research
·3 min read

Verizon Communications (VZ) closed the most recent trading day at $57.04, moving -0.04% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Heading into today, shares of the largest U.S. cellphone carrier had lost 4.76% over the past month, lagging the Computer and Technology sector's gain of 4.43% and the S&P 500's gain of 4.12% in that time.

VZ will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2021. The company is expected to report EPS of $1.16, up 2.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.41 billion, down 1.06% from the year-ago period.

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

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 0.04% lower within the past month. VZ is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note VZ's current valuation metrics, including its Forward P/E ratio of 11.38. This valuation marks a discount compared to its industry's average Forward P/E of 26.76.

Meanwhile, VZ's PEG ratio is currently 3.28. 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 2.83 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 124, which puts it in the top 49% 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.

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


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