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

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Verizon Communications (VZ - Free Report) closed at $60.06 in the latest trading session, marking a -0.97% move from the prior day. This move lagged the S&P 500's daily gain of 2.3%. Elsewhere, the Dow gained 2.5%, while the tech-heavy Nasdaq added 2.95%.

Coming into today, shares of the largest U.S. cellphone carrier had gained 4.25% in the past month. In that same time, the Computer and Technology sector lost 1.65%, while the S&P 500 gained 1.21%.

Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. This is expected to be January 22, 2019. In that report, analysts expect VZ to post earnings of $1.10 per share. This would mark year-over-year growth of 27.91%. Meanwhile, our latest consensus estimate is calling for revenue of $34.31 billion, up 1.05% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.69 per share and revenue of $130.91 billion. These totals would mark changes of +25.4% and +3.87%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for VZ. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 moved 0% lower. VZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that VZ has a Forward P/E ratio of 12.94 right now. Its industry sports an average Forward P/E of 35.2, so we one might conclude that VZ is trading at a discount comparatively.

We can also see that VZ currently has a PEG ratio of 2.64. 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. Wireless National stocks are, on average, holding a PEG ratio of 4.38 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 19% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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