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

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Verizon Communications (VZ - Free Report) closed the most recent trading day at $50.96, making no change from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 0.86% over the past month. This has lagged the Computer and Technology sector's gain of 3.24% and the S&P 500's loss of 0.62% in that time.

Verizon Communications will be looking to display strength as it nears its next earnings release, which is expected to be July 22, 2022. The company is expected to report EPS of $1.35, down 1.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.73 billion, down 0.11% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $136.49 billion, which would represent changes of 0% and +2.15%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Verizon Communications. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 9.45. This represents a discount compared to its industry's average Forward P/E of 28.45.

It is also worth noting that VZ currently has a PEG ratio of 2.63. 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 industry currently had an average PEG ratio of 2 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 109, putting it in the top 44% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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