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Why Verizon Communications (VZ) Outpaced the Stock Market Today
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In the latest close session, Verizon Communications (VZ - Free Report) was up +1.28% at $50.61. This change outpaced the S&P 500's 0.86% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.96%.
Coming into today, shares of the largest U.S. cellphone carrier had gained 3.63% in the past month. In that same time, the Computer and Technology sector lost 0.56%, while the S&P 500 lost 1.96%.
Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. The company is expected to report EPS of $1.29, up 6.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.67 billion, up 2.52% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.03 per share and a revenue of $141.1 billion, signifying shifts of +6.79% and +2.1%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Verizon Communications is currently a Zacks Rank #3 (Hold).
With respect to valuation, Verizon Communications is currently being traded at a Forward P/E ratio of 9.93. This valuation marks a discount compared to its industry average Forward P/E of 10.89.
Also, we should mention that VZ has a PEG ratio of 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 1.48.
The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 223, this industry ranks in the bottom 10% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Why Verizon Communications (VZ) Outpaced the Stock Market Today
In the latest close session, Verizon Communications (VZ - Free Report) was up +1.28% at $50.61. This change outpaced the S&P 500's 0.86% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.96%.
Coming into today, shares of the largest U.S. cellphone carrier had gained 3.63% in the past month. In that same time, the Computer and Technology sector lost 0.56%, while the S&P 500 lost 1.96%.
Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. The company is expected to report EPS of $1.29, up 6.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $34.67 billion, up 2.52% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.03 per share and a revenue of $141.1 billion, signifying shifts of +6.79% and +2.1%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Verizon Communications is currently a Zacks Rank #3 (Hold).
With respect to valuation, Verizon Communications is currently being traded at a Forward P/E ratio of 9.93. This valuation marks a discount compared to its industry average Forward P/E of 10.89.
Also, we should mention that VZ has a PEG ratio of 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 1.48.
The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 223, this industry ranks in the bottom 10% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.