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Verizon Communications (VZ) Stock Sinks As Market Gains: Here's Why
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Verizon Communications (VZ - Free Report) closed at $42.50 in the latest trading session, marking a -1.19% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.94% for the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The largest U.S. cellphone carrier's stock has dropped by 2.23% in the past month, falling short of the Computer and Technology sector's gain of 3.9% and the S&P 500's gain of 1.67%.
The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. The company is expected to report EPS of $1.18, up 2.61% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $33.49 billion, indicating a 2.13% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.69 per share and revenue of $137.09 billion, which would represent changes of +2.18% and +1.71%, respectively, from the prior year.
Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. At present, Verizon Communications boasts a Zacks Rank of #3 (Hold).
Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 9.17. This indicates a discount in contrast to its industry's Forward P/E of 20.74.
Investors should also note that VZ has a PEG ratio of 3.19 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. VZ's industry had an average PEG ratio of 3.19 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Verizon Communications (VZ) Stock Sinks As Market Gains: Here's Why
Verizon Communications (VZ - Free Report) closed at $42.50 in the latest trading session, marking a -1.19% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.94% for the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The largest U.S. cellphone carrier's stock has dropped by 2.23% in the past month, falling short of the Computer and Technology sector's gain of 3.9% and the S&P 500's gain of 1.67%.
The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. The company is expected to report EPS of $1.18, up 2.61% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $33.49 billion, indicating a 2.13% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.69 per share and revenue of $137.09 billion, which would represent changes of +2.18% and +1.71%, respectively, from the prior year.
Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. At present, Verizon Communications boasts a Zacks Rank of #3 (Hold).
Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 9.17. This indicates a discount in contrast to its industry's Forward P/E of 20.74.
Investors should also note that VZ has a PEG ratio of 3.19 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. VZ's industry had an average PEG ratio of 3.19 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.