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Verizon Communications (VZ) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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In the latest market close, Verizon Communications (VZ - Free Report) reached $43.75, with a +0.23% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.07%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 2.17%.

The the stock of largest U.S. cellphone carrier has risen by 7.04% in the past month, leading the Computer and Technology sector's loss of 0.16% and the S&P 500's gain of 2.92%.

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 October 22, 2024. The company's upcoming EPS is projected at $1.17, signifying a 4.1% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $33.77 billion, indicating a 1.31% increase compared to the same quarter of the previous year.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $135.21 billion. These results would represent year-over-year changes of -2.76% and +0.93%, respectively.

Investors might also notice recent changes to analyst estimates for Verizon Communications. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Verizon Communications boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Verizon Communications currently has a Forward P/E ratio of 9.54. For comparison, its industry has an average Forward P/E of 22.05, which means Verizon Communications is trading at a discount to the group.

One should further note that VZ currently holds a PEG ratio of 3.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Wireless National stocks are, on average, holding a PEG ratio of 3.82 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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