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Verizon Communications (VZ) Increases Despite Market Slip: Here's What You Need to Know

Verizon Communications (VZ) closed at $37.76 in the latest trading session, marking a +0.77% move from the prior day. This change outpaced the S&P 500's 0.1% loss on the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.16%.

Heading into today, shares of the largest U.S. cellphone carrier had gained 6.66% over the past month, lagging the Computer and Technology sector's gain of 14.19% and the S&P 500's gain of 10.77% in that time.

The investment community will be closely monitoring the performance of Verizon Communications in its forthcoming earnings report. In that report, analysts expect Verizon Communications to post earnings of $1.08 per share. This would mark a year-over-year decline of 9.24%. Alongside, our most recent consensus estimate is anticipating revenue of $34.72 billion, indicating a 1.52% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.70 per share and a revenue of $133.56 billion, signifying shifts of -9.27% and -2.39%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Verizon Communications. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.02% increase. Currently, Verizon Communications is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Verizon Communications is currently being traded at a Forward P/E ratio of 7.97. This indicates a discount in contrast to its industry's Forward P/E of 8.43.

Also, we should mention that VZ has a PEG ratio of 2.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless National industry currently had an average PEG ratio of 2.13 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Verizon Communications Inc. (VZ) : Free Stock Analysis Report

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Zacks Investment Research