Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Verizon Communications (VZ - Free Report) closed at $59.36, marking a -0.05% move from the previous day. This change lagged the S&P 500's 1.61% gain on the day. At the same time, the Dow added 1.51%, and the tech-heavy Nasdaq gained 1.87%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 0.07% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.69% and the S&P 500's loss of 4.08% in that time.

Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. This is expected to be October 21, 2020. 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 $31.65 billion, down 3.79% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.78 per share and revenue of $127.95 billion, which would represent changes of -0.62% and -2.97%, respectively, from the prior year.

Any recent changes to analyst estimates for VZ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. VZ currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, VZ is holding a Forward P/E ratio of 12.43. This represents a discount compared to its industry's average Forward P/E of 23.89.

Meanwhile, VZ's PEG ratio is currently 3.65. 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. The Wireless National industry currently had an average PEG ratio of 4.21 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 116, which puts it in the top 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Verizon Communications Inc. (VZ) - free report >>

Published in