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

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Verizon Communications (VZ - Free Report) closed at $58.96 in the latest trading session, marking a -0.05% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 2.72% in the past month. In that same time, the Computer and Technology sector gained 7.44%, while the S&P 500 gained 3.8%.

VZ will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2021. The company is expected to report EPS of $1.16, up 2.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.41 billion, down 1.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.85 per share and revenue of $127.99 billion. These totals would mark changes of +0.83% and -2.94%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for VZ. 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.

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.

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 0.02% lower. VZ is currently a Zacks Rank #3 (Hold).

Digging into valuation, VZ currently has a Forward P/E ratio of 12.16. This represents a discount compared to its industry's average Forward P/E of 14.22.

Meanwhile, VZ's PEG ratio is currently 3.5. 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. VZ's industry had an average PEG ratio of 2.86 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 117, which puts it in the top 46% 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.

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


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