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Verizon Communications (VZ) Outpaces Stock Market Gains: What You Should Know
Verizon Communications (VZ - Free Report) closed the most recent trading day at $37.43, moving +1.74% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Coming into today, shares of the largest U.S. cellphone carrier had lost 8.53% in the past month. In that same time, the Computer and Technology sector gained 2.42%, while the S&P 500 lost 3.9%.
Wall Street will be looking for positivity from Verizon Communications as it approaches its next earnings report date. On that day, Verizon Communications is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 11.11%. Meanwhile, our latest consensus estimate is calling for revenue of $33.93 billion, up 1.12% from the prior-year quarter.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.74 per share and revenue of $138.01 billion. These results would represent year-over-year changes of -8.49% and +0.86%, respectively.
Investors might also notice recent changes to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 7.77. For comparison, its industry has an average Forward P/E of 22.88, which means Verizon Communications is trading at a discount to the group.
Also, we should mention that VZ has a PEG ratio of 1.87. 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 1.83 at yesterday's closing price.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.