Back to top

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

Read MoreHide Full Article

Verizon Communications (VZ - Free Report) closed the most recent trading day at $57.58, moving +1.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 2.02%.

Coming into today, shares of the largest U.S. cellphone carrier had gained 5.53% in the past month. In that same time, the Computer and Technology sector gained 2.44%, while the S&P 500 gained 1.5%.

VZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect VZ to post earnings of $1.17 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.29 billion, up 1.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.66 per share and revenue of $132.19 billion, which would represent changes of -1.06% and +1.01%, respectively, from the prior year.

Any recent changes to analyst estimates for VZ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. VZ is currently a Zacks Rank #3 (Hold).

Investors should also note VZ's current valuation metrics, including its Forward P/E ratio of 12.13. This valuation marks a discount compared to its industry's average Forward P/E of 27.73.

Investors should also note that VZ has a PEG ratio of 2.24 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless National was holding an average PEG ratio of 2.24 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.

To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Verizon Communications Inc. (VZ) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in