Verizon Communications (VZ) closed at $41.99 in the latest trading session, marking a -0.73% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.82%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 1.77%.
Heading into today, shares of the largest U.S. cellphone carrier had gained 4.7% over the past month, outpacing the Computer and Technology sector's gain of 1.43% and the S&P 500's gain of 0.8% in that time.
The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. The company's upcoming EPS is projected at $1.11, signifying a 2.78% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $35.65 billion, indicating a 1.49% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.61 per share and revenue of $134.76 billion. These totals would mark changes of -2.12% and +0.58%, respectively, from last year.
Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 0.07% higher. Verizon Communications presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Verizon Communications is presently being traded at a Forward P/E ratio of 9.17. This signifies a discount in comparison to the average Forward P/E of 21.98 for its industry.
One should further note that VZ currently holds a PEG ratio of 3.07. 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. The Wireless National industry currently had an average PEG ratio of 3.07 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 141, which puts it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
