Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Verizon Communications (VZ - Free Report) closed at $49.99, marking a -0.64% move from the previous day. This move lagged the S&P 500's daily gain of 9.38%. Meanwhile, the Dow gained 11.37%, and the Nasdaq, a tech-heavy index, added 8.12%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 13.24% in the past month. In that same time, the Computer and Technology sector lost 27.9%, while the S&P 500 lost 32.94%.

VZ will be looking to display strength as it nears its next earnings release, which is expected to be April 24, 2020. On that day, VZ is projected to report earnings of $1.23 per share, which would represent year-over-year growth of 2.5%. Our most recent consensus estimate is calling for quarterly revenue of $32.59 billion, up 1.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.94 per share and revenue of $134.92 billion. These totals would mark changes of +2.7% and +2.32%, respectively, from last year.

Any recent changes to analyst estimates for VZ should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 0.06% lower. VZ is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note VZ's current valuation metrics, including its Forward P/E ratio of 10.18. This represents a discount compared to its industry's average Forward P/E of 16.62.

Also, we should mention that VZ has a PEG ratio of 2.96. 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. VZ's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.

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.

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

Published in