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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 $41.56, moving +1.42% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.15%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.17%.

Shares of the largest U.S. cellphone carrier have appreciated by 4.2% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.13% and outperforming the S&P 500's gain of 3.2%.

The investment community will be paying close attention to the earnings performance of Verizon Communications in its upcoming release. The company is slated to reveal its earnings on July 22, 2024. It is anticipated that the company will report an EPS of $1.16, marking a 4.13% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $33.06 billion, up 1.44% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.60 per share and a revenue of $135.03 billion, signifying shifts of -2.34% and +0.79%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Verizon Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. As of now, Verizon Communications holds a Zacks Rank of #3 (Hold).

In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 8.92. This represents a discount compared to its industry's average Forward P/E of 19.18.

It is also worth noting that VZ currently has a PEG ratio of 2.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Wireless National industry had an average PEG ratio of 2.97.

The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 186, positioning it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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