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Verizon Communications (VZ) Dips More Than Broader Markets: What You Should Know

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Verizon Communications (VZ - Free Report) closed at $53.73 in the latest trading session, marking a -1.9% move from the prior day. This change lagged the S&P 500's daily loss of 1.6%. Meanwhile, the Dow lost 1.84%, and the Nasdaq, a tech-heavy index, lost 0.95%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 4.45% in the past month. In that same time, the Computer and Technology sector lost 9.68%, while the S&P 500 lost 10.82%.

VZ will be looking to display strength as it nears its next earnings release, which is expected to be April 24, 2020. In that report, analysts expect VZ to post earnings of $1.15 per share. This would mark a year-over-year decline of 4.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $4.93 per share and revenue of $134.50 billion. These totals would mark changes of +2.49% and +2%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for VZ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.34% lower within the past month. VZ is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, VZ currently has a Forward P/E ratio of 11.11. For comparison, its industry has an average Forward P/E of 16.22, which means VZ is trading at a discount to the group.

Meanwhile, VZ's PEG ratio is currently 3.23. 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 1.53 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 42, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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