Verizon Communications (VZ) Stock Sinks As Market Gains: What You Should Know
Verizon Communications (VZ) closed at $53.28 in the latest trading session, marking a -0.45% move from the prior day. This change lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 0.21% over the past month. This has outpaced the Computer and Technology sector's loss of 2.99% and lagged the S&P 500's gain of 0.64% in that time.
Investors will be hoping for strength from Verizon Communications as it approaches its next earnings release, which is expected to be January 25, 2022. On that day, Verizon Communications is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 5.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.73 billion, down 2.76% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.31% higher within the past month. Verizon Communications currently has a Zacks Rank of #3 (Hold).
Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 9.88. This valuation marks a discount compared to its industry's average Forward P/E of 18.91.
Also, we should mention that VZ has a PEG ratio of 3.03. 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 2.67 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 177, which puts it in the bottom 31% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
