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Verizon Communications (VZ) Gains As Market Dips: What You Should Know

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The latest trading session saw Verizon Communications (VZ - Free Report) ending at $39.16, denoting a +0.72% adjustment from its last day's close. This change outpaced the S&P 500's 0.8% loss on the day. Elsewhere, the Dow saw a downswing of 0.76%, while the tech-heavy Nasdaq depreciated by 1.18%.

Shares of the largest U.S. cellphone carrier have appreciated by 1.2% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.11% and the S&P 500's gain of 3.4%.

The upcoming earnings release of Verizon Communications will be of great interest to investors. The company's earnings report is expected on January 23, 2024. On that day, Verizon Communications is projected to report earnings of $1.07 per share, which would represent a year-over-year decline of 10.08%. Meanwhile, our latest consensus estimate is calling for revenue of $34.76 billion, down 1.38% from the prior-year quarter.

Investors should also pay attention to any latest changes in analyst estimates for Verizon Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.26% lower within the past month. Right now, Verizon Communications possesses a Zacks Rank of #4 (Sell).

From a valuation perspective, Verizon Communications is currently exchanging hands at a Forward P/E ratio of 8.41. Its industry sports an average Forward P/E of 17.81, so one might conclude that Verizon Communications is trading at a discount comparatively.

Meanwhile, VZ's PEG ratio is currently 2.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Wireless National industry had an average PEG ratio of 2.24 as trading concluded yesterday.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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