Verizon Communications (VZ) closed at $46.90 in the latest trading session, marking a +2.45% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 1.62%. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
The largest U.S. cellphone carrier's stock has dropped by 4.49% in the past month, falling short of the Computer and Technology sector's loss of 0.74% and the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Verizon Communications in its upcoming earnings disclosure. In that report, analysts expect Verizon Communications to post earnings of $1.27 per share. This would mark year-over-year growth of 4.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.41 billion, up 2.62% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.96 per share and a revenue of $142.71 billion, signifying shifts of +5.31% and +3.27%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Verizon Communications. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. As of now, Verizon Communications holds a Zacks Rank of #3 (Hold).
Looking at valuation, Verizon Communications is presently trading at a Forward P/E ratio of 9.22. This expresses a discount compared to the average Forward P/E of 13.08 of its industry.
We can additionally observe that VZ currently boasts a PEG ratio of 1.12. 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. The average PEG ratio for the Wireless National industry stood at 1.08 at the close of the market yesterday.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Verizon Communications Inc. (VZ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).