Back to top

Image: Bigstock

Verizon Communications (VZ) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

The latest trading session saw Verizon Communications (VZ - Free Report) ending at $43.83, denoting a -0.61% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.81%.

The largest U.S. cellphone carrier's stock has climbed by 1.29% in the past month, falling short of the Computer and Technology sector's gain of 7.05% and the S&P 500's gain of 4.61%.

The upcoming earnings release of Verizon Communications will be of great interest to investors. The company is forecasted to report an EPS of $1.18, showcasing a 2.61% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $33.49 billion, up 2.13% from the prior-year quarter.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.69 per share and revenue of $137.09 billion. These results would represent year-over-year changes of +2.18% and +1.71%, respectively.

Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Verizon Communications is currently a Zacks Rank #3 (Hold).

Looking at valuation, Verizon Communications is presently trading at a Forward P/E ratio of 9.4. This indicates a discount in contrast to its industry's Forward P/E of 21.36.

We can additionally observe that VZ currently boasts a PEG ratio of 3.27. 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 3.27 as trading concluded yesterday.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Verizon Communications Inc. (VZ) - free report >>

Published in