Verizon Communications (VZ) closed at $44.21 in the latest trading session, marking a +1.07% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow experienced a rise of 0.57%, and the technology-dominated Nasdaq saw a decrease of 0.33%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 2.67% lagged the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Verizon Communications in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.2, signifying a 0.84% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $34.05 billion, showing a 2.15% escalation compared to the year-ago quarter.
VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.7 per share and revenue of $138.17 billion. These results would represent year-over-year changes of +2.4% and +2.51%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Verizon Communications is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Verizon Communications is at present trading with a Forward P/E ratio of 9.3. This denotes a discount relative to the industry average Forward P/E of 21.29.
Also, we should mention that VZ has a PEG ratio of 3.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Wireless National was holding an average PEG ratio of 3.37 at yesterday's closing price.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Verizon Communications Inc. (VZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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