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Verizon Communications (VZ) Laps the Stock Market: Here's Why
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In the latest close session, Verizon Communications (VZ - Free Report) was up +1.45% at $41.26. The stock's change was more than the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 0.22%.
The stock of largest U.S. cellphone carrier has risen by 2.47% in the past month, leading the Computer and Technology sector's loss of 1.07% and the S&P 500's gain of 0.08%.
The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. In that report, analysts expect Verizon Communications to post earnings of $1.08 per share. This would mark a year-over-year decline of 1.82%. In the meantime, our current consensus estimate forecasts the revenue to be $35.92 billion, indicating a 0.67% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.7 per share and a revenue of $137.88 billion, demonstrating changes of +2.4% and +2.29%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Verizon Communications is currently a Zacks Rank #3 (Hold).
Looking at valuation, Verizon Communications is presently trading at a Forward P/E ratio of 8.66. For comparison, its industry has an average Forward P/E of 18.58, which means Verizon Communications is trading at a discount to the group.
It is also worth noting that VZ currently has a PEG ratio of 3.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Wireless National industry stood at 1.48 at the close of the market yesterday.
The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Verizon Communications (VZ) Laps the Stock Market: Here's Why
In the latest close session, Verizon Communications (VZ - Free Report) was up +1.45% at $41.26. The stock's change was more than the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq increased by 0.22%.
The stock of largest U.S. cellphone carrier has risen by 2.47% in the past month, leading the Computer and Technology sector's loss of 1.07% and the S&P 500's gain of 0.08%.
The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. In that report, analysts expect Verizon Communications to post earnings of $1.08 per share. This would mark a year-over-year decline of 1.82%. In the meantime, our current consensus estimate forecasts the revenue to be $35.92 billion, indicating a 0.67% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.7 per share and a revenue of $137.88 billion, demonstrating changes of +2.4% and +2.29%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Verizon Communications is currently a Zacks Rank #3 (Hold).
Looking at valuation, Verizon Communications is presently trading at a Forward P/E ratio of 8.66. For comparison, its industry has an average Forward P/E of 18.58, which means Verizon Communications is trading at a discount to the group.
It is also worth noting that VZ currently has a PEG ratio of 3.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Wireless National industry stood at 1.48 at the close of the market yesterday.
The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.