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

Zacks Equity Research
·3 min read

In the latest trading session, Verizon Communications (VZ) closed at $57.26, marking a -0.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.04%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.28%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 4.2% in the past month. In that same time, the Computer and Technology sector gained 4.2%, while the S&P 500 gained 3.84%.

Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. This is expected to be January 26, 2021. In that report, analysts expect VZ to post earnings of $1.16 per share. This would mark year-over-year growth of 2.65%. 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. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. VZ is currently a Zacks Rank #3 (Hold).

Investors should also note VZ's current valuation metrics, including its Forward P/E ratio of 11.46. This valuation marks a discount compared to its industry's average Forward P/E of 25.36.

We can also see that VZ currently has a PEG ratio of 3.3. 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. The Wireless National was holding an average PEG ratio of 2.82 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 126, which puts it in the top 50% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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