Verizon Communications (VZ) ended the recent trading session at $40.89, demonstrating a +1.67% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.07%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 1.69%.
The largest U.S. cellphone carrier's shares have seen a decrease of 2.16% over the last month, not keeping up with the Computer and Technology sector's gain of 1.6% and the S&P 500's gain of 0.94%.
The investment community will be paying close attention to the earnings performance of Verizon Communications in its upcoming release. The company is forecasted to report an EPS of $1.07, showcasing a 2.73% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $35.92 billion, up 0.67% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.69 per share and a revenue of $137.88 billion, representing changes of +2.18% and +2.29%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 witnessed a 0.06% decrease. 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 8.57. This represents a discount compared to its industry average Forward P/E of 17.93.
It's also important to note that VZ currently trades at a PEG ratio of 3.59. 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 Wireless National industry had an average PEG ratio of 1.42 as trading concluded yesterday.
The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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