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Verizon Communications (VZ) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Verizon Communications (VZ - Free Report) closed at $38.05, marking a +1.04% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the largest U.S. cellphone carrier had lost 2.79% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Investors will be hoping for strength from Verizon Communications as it approaches its next earnings release, which is expected to be April 25, 2023. In that report, analysts expect Verizon Communications to post earnings of $1.19 per share. This would mark a year-over-year decline of 11.85%. Meanwhile, our latest consensus estimate is calling for revenue of $33.93 billion, up 1.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.68 per share and revenue of $138.01 billion. These totals would mark changes of -9.65% and +0.86%, respectively, from last year.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.22% lower within the past month. Verizon Communications is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 8.05. For comparison, its industry has an average Forward P/E of 22.5, which means Verizon Communications is trading at a discount to the group.
We can also see that VZ currently has a PEG ratio of 1.94. 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. VZ's industry had an average PEG ratio of 1.77 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 200, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Verizon Communications (VZ) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Verizon Communications (VZ - Free Report) closed at $38.05, marking a +1.04% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the largest U.S. cellphone carrier had lost 2.79% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Investors will be hoping for strength from Verizon Communications as it approaches its next earnings release, which is expected to be April 25, 2023. In that report, analysts expect Verizon Communications to post earnings of $1.19 per share. This would mark a year-over-year decline of 11.85%. Meanwhile, our latest consensus estimate is calling for revenue of $33.93 billion, up 1.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.68 per share and revenue of $138.01 billion. These totals would mark changes of -9.65% and +0.86%, respectively, from last year.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.22% lower within the past month. Verizon Communications is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 8.05. For comparison, its industry has an average Forward P/E of 22.5, which means Verizon Communications is trading at a discount to the group.
We can also see that VZ currently has a PEG ratio of 1.94. 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. VZ's industry had an average PEG ratio of 1.77 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 200, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.