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Verizon Communications (VZ) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Verizon Communications (VZ - Free Report) closed at $50.79, marking a -0.55% move from the previous day. This move lagged the S&P 500's daily gain of 2.07%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.49%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 2.41% over the past month. This has was narrower than the Computer and Technology sector's loss of 3.98% and lagged the S&P 500's loss of 2.08% in that time.
Wall Street will be looking for positivity from Verizon Communications as it approaches its next earnings report date. This is expected to be January 25, 2022. On that day, Verizon Communications is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 5.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.74 billion, down 2.74% from the year-ago period.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $5.36 per share and revenue of $133.27 billion. These results would represent year-over-year changes of +9.39% and +3.88%, respectively.
It is also important to note the recent changes to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-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. 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Verizon Communications is currently a Zacks Rank #3 (Hold).
In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 9.53. This represents a discount compared to its industry's average Forward P/E of 51.23.
Investors should also note that VZ has a PEG ratio of 2.95 right now. 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 1.83 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 197, putting it in the bottom 23% 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.
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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Verizon Communications (VZ) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Verizon Communications (VZ - Free Report) closed at $50.79, marking a -0.55% move from the previous day. This move lagged the S&P 500's daily gain of 2.07%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.49%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 2.41% over the past month. This has was narrower than the Computer and Technology sector's loss of 3.98% and lagged the S&P 500's loss of 2.08% in that time.
Wall Street will be looking for positivity from Verizon Communications as it approaches its next earnings report date. This is expected to be January 25, 2022. On that day, Verizon Communications is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 5.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.74 billion, down 2.74% from the year-ago period.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $5.36 per share and revenue of $133.27 billion. These results would represent year-over-year changes of +9.39% and +3.88%, respectively.
It is also important to note the recent changes to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-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. 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Verizon Communications is currently a Zacks Rank #3 (Hold).
In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 9.53. This represents a discount compared to its industry's average Forward P/E of 51.23.
Investors should also note that VZ has a PEG ratio of 2.95 right now. 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 1.83 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 197, putting it in the bottom 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.