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

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In the latest trading session, Verizon Communications (VZ - Free Report) closed at $57.01, marking a +0.55% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.33%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had gained 1.56% over the past month. This has outpaced the Computer and Technology sector's loss of 7.54% and the S&P 500's loss of 10.5% in that time.

Investors will be hoping for strength from VZ as it approaches its next earnings release, which is expected to be April 24, 2020. The company is expected to report EPS of $1.22, up 1.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.47 billion, up 1.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.87 per share and revenue of $133.40 billion, which would represent changes of +1.25% and +1.16%, respectively, from the prior 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. 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 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 1.42% lower. VZ is currently a Zacks Rank #3 (Hold).

In terms of valuation, VZ is currently trading at a Forward P/E ratio of 11.64. Its industry sports an average Forward P/E of 16.44, so we one might conclude that VZ is trading at a discount comparatively.

Investors should also note that VZ has a PEG ratio of 3.38 right now. 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 1.52 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.

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


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