In the latest trading session, Verizon Communications (VZ) closed at $40.32, marking a +1% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.22%.
Heading into today, shares of the largest U.S. cellphone carrier had lost 1.65% over the past month, lagging the Computer and Technology sector's gain of 5.41% and the S&P 500's gain of 4.7%.
The upcoming earnings release of Verizon Communications will be of great interest to investors. In that report, analysts expect Verizon Communications to post earnings of $1.06 per share. This would mark a year-over-year decline of 3.64%. Our most recent consensus estimate is calling for quarterly revenue of $35.92 billion, up 0.66% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $137.87 billion, which would represent changes of +1.96% and +2.29%, respectively, from the prior year.
Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% lower. Verizon Communications is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Verizon Communications is presently being traded at a Forward P/E ratio of 8.53. For comparison, its industry has an average Forward P/E of 16.16, which means Verizon Communications is trading at a discount to the group.
One should further note that VZ currently holds a PEG ratio of 3.57. 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. As the market closed yesterday, the Wireless National industry was having an average PEG ratio of 1.43.
The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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