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

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In the latest trading session, Verizon Communications (VZ - Free Report) closed at $59.61, marking a -1.23% move from the previous day. This change lagged the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.84%, and the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 2.36% over the past month. This has outpaced the Computer and Technology sector's loss of 2.66% and the S&P 500's loss of 1.96% in that time.

Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. On that day, VZ is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 2.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.66 billion, down 3.76% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.78 per share and revenue of $127.96 billion. These totals would mark changes of -0.62% and -2.96%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for VZ. These revisions help to show the ever-changing nature of 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. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. VZ is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note VZ's current valuation metrics, including its Forward P/E ratio of 12.63. This valuation marks a discount compared to its industry's average Forward P/E of 31.52.

Investors should also note that VZ has a PEG ratio of 3.71 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VZ's industry had an average PEG ratio of 3.71 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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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