We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Wireless National Industry has been a bright spot in an otherwise dim market, increasing nearly 8% year-to-date and crushing the S&P 500’s performance.
One company residing in the industry, Verizon Communications (VZ - Free Report) , is slated to release quarterly results this Friday before the opening bell. Verizon offers communication services in the form of local phone service, long-distance, wireless, and data services.
In addition, the company is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
Let’s take a look at how the communications giant shapes up heading into Friday.
Share Performance & Valuation
Year-to-date, Verizon shares have provided investors with a much-needed layer of valuable defense, declining a marginal 1.6% but underperforming its Zacks Industry.
Image Source: Zacks Investment Research
Over the last year, the story remains the same - Verizon shares have decreased by 7.5%, underperforming its Zacks Industry by a small margin.
Image Source: Zacks Investment Research
Verizon sports very enticing valuation metrics; its 9.3X forward earnings multiple is well below its five-year median of 11.7X and nowhere near highs of 14.2X in 2018. In addition, shares trade at an attractive 23% discount relative to its Zacks Industry.
VZ has a Style Score of a B for Value.
Image Source: Zacks Investment Research
Growth Estimates
For the quarter to be reported, analysts have been overwhelmingly bearish – six of the seven estimate revisions from analysts have been downward.
Image Source: Zacks Investment Research
The Zacks Consensus EPS Estimate resides at $1.34, notching a marginal 2.2% decrease in quarterly earnings year-over-year.
Looking at top-line projections, VZ is forecasted to generate $33.8 billion in quarterly revenue, penciling in a minuscule 0.03% uptick from the year-ago quarter.
Image Source: Zacks Investment Research
Quarterly Performance & Share Reactions
Verizon has impressively recorded eight bottom-line beats over its previous ten quarters. However, in its latest quarterly release, the company reported earnings in-line with the $1.35 Zacks Consensus EPS Estimate.
Top-line results have primarily come in above expectations as well, with the company exceeding quarterly revenue estimates in seven of its previous ten quarters.
In addition, the market has had mixed reactions to bottom-line beats; shares have moved upwards three times over its last six EPS beats.
Bottom Line
Verizon shares have been one of the safer places for investors to park their cash in 2022, decreasing a marginal 1.6% in value. Compared to the valuation slashes we’ve seen across other industries, it’s a major positive.
Earnings are forecasted to decrease marginally. However, the company has rock-solid valuation levels, and recent earnings performance has been stellar.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Verizon Q2 Preview: EPS Beat in Store?
The Zacks Wireless National Industry has been a bright spot in an otherwise dim market, increasing nearly 8% year-to-date and crushing the S&P 500’s performance.
One company residing in the industry, Verizon Communications (VZ - Free Report) , is slated to release quarterly results this Friday before the opening bell. Verizon offers communication services in the form of local phone service, long-distance, wireless, and data services.
In addition, the company is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
Let’s take a look at how the communications giant shapes up heading into Friday.
Share Performance & Valuation
Year-to-date, Verizon shares have provided investors with a much-needed layer of valuable defense, declining a marginal 1.6% but underperforming its Zacks Industry.
Image Source: Zacks Investment Research
Over the last year, the story remains the same - Verizon shares have decreased by 7.5%, underperforming its Zacks Industry by a small margin.
Image Source: Zacks Investment Research
Verizon sports very enticing valuation metrics; its 9.3X forward earnings multiple is well below its five-year median of 11.7X and nowhere near highs of 14.2X in 2018. In addition, shares trade at an attractive 23% discount relative to its Zacks Industry.
VZ has a Style Score of a B for Value.
Image Source: Zacks Investment Research
Growth Estimates
For the quarter to be reported, analysts have been overwhelmingly bearish – six of the seven estimate revisions from analysts have been downward.
Image Source: Zacks Investment Research
The Zacks Consensus EPS Estimate resides at $1.34, notching a marginal 2.2% decrease in quarterly earnings year-over-year.
Looking at top-line projections, VZ is forecasted to generate $33.8 billion in quarterly revenue, penciling in a minuscule 0.03% uptick from the year-ago quarter.
Image Source: Zacks Investment Research
Quarterly Performance & Share Reactions
Verizon has impressively recorded eight bottom-line beats over its previous ten quarters. However, in its latest quarterly release, the company reported earnings in-line with the $1.35 Zacks Consensus EPS Estimate.
Top-line results have primarily come in above expectations as well, with the company exceeding quarterly revenue estimates in seven of its previous ten quarters.
In addition, the market has had mixed reactions to bottom-line beats; shares have moved upwards three times over its last six EPS beats.
Bottom Line
Verizon shares have been one of the safer places for investors to park their cash in 2022, decreasing a marginal 1.6% in value. Compared to the valuation slashes we’ve seen across other industries, it’s a major positive.
Earnings are forecasted to decrease marginally. However, the company has rock-solid valuation levels, and recent earnings performance has been stellar.