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Verizon Communications (VZ) Dips More Than Broader Markets: What You Should Know

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Verizon Communications (VZ - Free Report) closed the most recent trading day at $41.37, moving -1.94% from the previous trading session. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.

Coming into today, shares of the largest U.S. cellphone carrier had gained 12.81% in the past month. In that same time, the Computer and Technology sector lost 8.41%, while the S&P 500 lost 1.03%.

Wall Street will be looking for positivity from Verizon Communications as it approaches its next earnings report date. This is expected to be January 24, 2023. On that day, Verizon Communications is projected to report earnings of $1.21 per share, which would represent a year-over-year decline of 7.63%. Our most recent consensus estimate is calling for quarterly revenue of $35.15 billion, up 3.18% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.01% lower. Verizon Communications is currently a Zacks Rank #3 (Hold).

Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 8.36. For comparison, its industry has an average Forward P/E of 24.82, which means Verizon Communications is trading at a discount to the group.

Investors should also note that VZ has a PEG ratio of 2.01 right now. 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. Wireless National stocks are, on average, holding a PEG ratio of 1.14 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.


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