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

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Verizon Communications (VZ - Free Report) ended the recent trading session at $43.27, demonstrating a +2.27% change from the preceding day's closing price. This change outpaced the S&P 500's 0.52% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 0.48%.

The stock of largest U.S. cellphone carrier has fallen by 3.75% in the past month, lagging the Computer and Technology sector's gain of 7.56% and the S&P 500's gain of 4.27%.

Market participants will be closely following the financial results of Verizon Communications in its upcoming release. The company plans to announce its earnings on July 21, 2025. The company is predicted to post an EPS of $1.18, indicating a 2.61% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $33.54 billion, indicating a 2.28% 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 $137.12 billion, which would represent changes of +2.18% and +1.73%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Currently, Verizon Communications is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Verizon Communications is presently trading at a Forward P/E ratio of 9.02. For comparison, its industry has an average Forward P/E of 21.75, which means Verizon Communications is trading at a discount to the group.

We can additionally observe that VZ currently boasts a PEG ratio of 3.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless National industry currently had an average PEG ratio of 3.14 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.

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.

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


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