Verizon Communications (VZ) closed at $46.65 in the latest trading session, marking a -2.55% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.74%. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.89%.
Shares of the largest U.S. cellphone carrier witnessed a gain of 1.12% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 11.4%, and the S&P 500's gain of 5.39%.
Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.28, showcasing a 4.92% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $35.56 billion, reflecting a 3.06% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $142.95 billion, signifying shifts of +5.31% and +3.45%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Verizon Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term 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 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 0.18% higher. Verizon Communications is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Verizon Communications is currently exchanging hands at a Forward P/E ratio of 9.65. This expresses a discount compared to the average Forward P/E of 13.67 of its industry.
It's also important to note that VZ currently trades at a PEG ratio of 1.14. 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. As the market closed yesterday, the Wireless National industry was having an average PEG ratio of 1.12.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Verizon Communications Inc. (VZ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).