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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 the most recent trading day at $53.87, moving -0.68% from the previous trading session. This change lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 8.07% over the past month. This has outpaced the Computer and Technology sector's loss of 5.82% and the S&P 500's loss of 0.13% in that time.

Verizon Communications will be looking to display strength as it nears its next earnings release, which 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%. Our most recent consensus estimate is calling for quarterly revenue of $33.71 billion, down 2.83% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. Verizon Communications currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Verizon Communications has a Forward P/E ratio of 10.06 right now. This represents a discount compared to its industry's average Forward P/E of 19.05.

Also, we should mention that VZ has a PEG ratio of 3.09. 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 was holding an average PEG ratio of 2.23 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 171, putting it in the bottom 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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