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Verizon Communications (VZ) Exceeds Market Returns: Some Facts to Consider

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Verizon Communications (VZ - Free Report) closed the most recent trading day at $37.67, moving +0.8% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.45%.

The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2024. The company's earnings per share (EPS) are projected to be $1.07, reflecting a 10.08% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $34.76 billion, down 1.38% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.70 per share and a revenue of $133.61 billion, indicating changes of -9.27% and -2.36%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. 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 7.95. This denotes a discount relative to the industry's average Forward P/E of 8.58.

One should further note that VZ currently holds a PEG ratio of 2.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 2.17.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.


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