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

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Verizon Communications (VZ - Free Report) closed at $59.27 in the latest trading session, marking a +0.02% move from the prior day. This change outpaced the S&P 500's 0.22% loss on the day. At the same time, the Dow lost 0.78%, and the tech-heavy Nasdaq gained 0.68%.

Coming into today, shares of the largest U.S. cellphone carrier had gained 3.42% in the past month. In that same time, the Computer and Technology sector gained 13.31%, while the S&P 500 gained 9.15%.

VZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.22, down 2.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $31.66 billion, down 3.75% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.78 per share and revenue of $127.99 billion, which would represent changes of -0.62% and -2.94%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for VZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. VZ currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that VZ has a Forward P/E ratio of 12.4 right now. This represents a discount compared to its industry's average Forward P/E of 22.8.

We can also see that VZ currently has a PEG ratio of 3.64. 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 industry currently had an average PEG ratio of 4.23 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 128, 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.

To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.


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