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

Zacks Equity Research

In the latest trading session, Verizon Communications (VZ) closed at $60.74, marking a -0.51% move from the previous day. This change lagged the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.91%.

Heading into today, shares of the largest U.S. cellphone carrier had gained 1.78% over the past month, outpacing the Computer and Technology sector's loss of 0.49% and the S&P 500's loss of 0.61% in that time.

VZ will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2019. 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 $32.71 billion, up 0.33% from the year-ago period.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $131.30 billion. These results would represent year-over-year changes of +2.12% and +0.33%, respectively.

Investors should also note any recent changes to analyst estimates for VZ. 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.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. VZ is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note VZ's current valuation metrics, including its Forward P/E ratio of 12.69. This represents a discount compared to its industry's average Forward P/E of 13.63.

We can also see that VZ currently has a PEG ratio of 3.06. 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. The Wireless National was holding an average PEG ratio of 2.75 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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