Verizon (VZ) Moves 5.3% Higher: Will This Strength Last?
Verizon Communications (VZ) shares rallied 5.3% in the last trading session to close at $33.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.9% loss over the past four weeks.
With one of the most efficient wireless networks in the United States, Verizon deploys the latest technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. The company remains focused on making necessary capital expenditures due to the expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to cater to huge traffic demands across multiple verticals and the continued deployment of the fiber infrastructure.
Verizon has significantly expanded its 5G coverage by deploying 5G Ultra Wideband service across various cities. Powered by the C-band spectrum, this 5G network service is expected to cater to the exponential growth of video demand. The company is witnessing significant 5G adoption and fixed wireless broadband momentum, while increasing demand for premium mobility and broadband offerings instill optimism.
This largest U.S. cellphone carrier is expected to post quarterly earnings of $1.17 per share in its upcoming report, which represents a year-over-year change of -10.7%. Revenues are expected to be $33.43 billion, down 1.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Verizon, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on VZ going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Verizon belongs to the Zacks Wireless National industry. Another stock from the same industry, Cogent Communications (CCOI), closed the last trading session 1.5% higher at $63.80. Over the past month, CCOI has returned -4.3%.
Cogent's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. Compared to the company's year-ago EPS, this represents a change of -75%. Cogent currently boasts a Zacks Rank of #1 (Strong Buy).
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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
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