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

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In the latest trading session, Verizon Communications (VZ - Free Report) closed at $56.32, marking a +0.41% move from the previous day. This change outpaced the S&P 500's 0.12% gain on the day.

Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 2.09% over the past month. This has lagged the Computer and Technology sector's gain of 4.26% and the S&P 500's gain of 3% in that time.

VZ will be looking to display strength as it nears its next earnings release, which is expected to be July 21, 2021. On that day, VZ is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 9.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $32.62 billion, up 7.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.11 per share and revenue of $134.1 billion. These totals would mark changes of +4.29% and +4.53%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. VZ currently has a Zacks Rank of #3 (Hold).

Digging into valuation, VZ currently has a Forward P/E ratio of 10.98. Its industry sports an average Forward P/E of 49.35, so we one might conclude that VZ is trading at a discount comparatively.

It is also worth noting that VZ currently has a PEG ratio of 3.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless National was holding an average PEG ratio of 2.25 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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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