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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 at $60.35 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 0.46% in the past month. In that same time, the Computer and Technology sector gained 7.17%, while the S&P 500 gained 3.58%.

Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. In that report, analysts expect VZ to post earnings of $1.16 per share. This would mark year-over-year growth of 2.65%. Meanwhile, our latest consensus estimate is calling for revenue of $34.55 billion, down 0.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.85 per share and revenue of $128.15 billion, which would represent changes of +0.83% and -2.82%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VZ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. VZ is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, VZ is currently trading at a Forward P/E ratio of 12.48. For comparison, its industry has an average Forward P/E of 15.98, which means VZ is trading at a discount to the group.

Also, we should mention that VZ has a PEG ratio of 3.59. 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. Wireless National stocks are, on average, holding a PEG ratio of 2.97 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 83, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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