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

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The most recent trading session ended with Verizon Communications (VZ - Free Report) standing at $42.63, reflecting a -1.85% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.

The the stock of largest U.S. cellphone carrier has risen by 7.26% in the past month, leading the Computer and Technology sector's loss of 12.07% and the S&P 500's loss of 8.15%.

The investment community will be paying close attention to the earnings performance of Verizon Communications in its upcoming release. The company's earnings per share (EPS) are projected to be $1.14, reflecting a 0.87% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $33.46 billion, indicating a 1.44% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.69 per share and a revenue of $136.75 billion, representing changes of +2.18% and +1.46%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% downward. Currently, Verizon Communications is carrying a Zacks Rank of #3 (Hold).

Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 9.27. Its industry sports an average Forward P/E of 20.66, so one might conclude that Verizon Communications is trading at a discount comparatively.

We can also see that VZ currently has a PEG ratio of 4.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Wireless National industry had an average PEG ratio of 3.76.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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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