Verizon Communications (VZ) ended the recent trading session at $42.54, demonstrating a -1.14% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.23%. At the same time, the Dow lost 0.91%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the largest U.S. cellphone carrier had lost 6.58% in the past month. In that same time, the Computer and Technology sector lost 16.18%, while the S&P 500 lost 12.13%.
Market participants will be closely following the financial results of Verizon Communications in its upcoming release. The company's upcoming EPS is projected at $1.14, signifying a 0.87% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $33.39 billion, reflecting a 1.23% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.69 per share and revenue of $136.7 billion. These totals would mark changes of +2.18% and +1.42%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.12% increase. At present, Verizon Communications boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 9.17. Its industry sports an average Forward P/E of 19.83, so one might conclude that Verizon Communications is trading at a discount comparatively.
We can also see that VZ currently has a PEG ratio of 4.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Wireless National industry had an average PEG ratio of 3.05.
The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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