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Verizon Communications (VZ) Stock Falls Amid Market Uptick: What Investors Need to Know

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Verizon Communications (VZ - Free Report) closed the most recent trading day at $38.18, moving -0.26% from the previous trading session. This move lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow saw an upswing of 1.65%, while the tech-heavy Nasdaq appreciated by 2.45%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 6.13% in the past month. In that same time, the Computer and Technology sector lost 3.84%, while the S&P 500 lost 3.31%.

Market participants will be closely following the financial results of Verizon Communications in its upcoming release. The company plans to announce its earnings on January 24, 2025. The company is forecasted to report an EPS of $1.11, showcasing a 2.78% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $35.4 billion, indicating a 0.77% growth compared to the corresponding quarter of the prior year.

Investors might also notice recent changes to analyst estimates for Verizon Communications. Such recent modifications usually signify the changing landscape 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.15% downward. At present, Verizon Communications boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Verizon Communications is at present trading with a Forward P/E ratio of 8.12. Its industry sports an average Forward P/E of 17.38, so one might conclude that Verizon Communications is trading at a discount comparatively.

Investors should also note that VZ has a PEG ratio of 3.21 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 3.21.

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 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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