In the latest trading session, Verizon Communications (VZ) closed at $42.36, marking a +1.58% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.96% for the day. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.
Heading into today, shares of the largest U.S. cellphone carrier had lost 3.74% over the past month, lagging the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5%.
Investors will be eagerly watching for the performance of Verizon Communications in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 21, 2025. In that report, analysts expect Verizon Communications to post earnings of $1.18 per share. This would mark year-over-year growth of 2.61%. Simultaneously, our latest consensus estimate expects the revenue to be $33.54 billion, showing a 2.28% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.69 per share and a revenue of $137.12 billion, representing changes of +2.18% and +1.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Verizon Communications presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 8.89. Its industry sports an average Forward P/E of 20.69, 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 3.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Wireless National industry was having an average PEG ratio of 3.09.
The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 175, finds itself in the bottom 29% echelons 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.
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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