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Verizon Communications (VZ) Gains As Market Dips: What You Should Know
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In the latest trading session, Verizon Communications (VZ - Free Report) closed at $50.28, marking a +0.18% move from the previous day. This move outpaced the S&P 500's daily loss of 0.91%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the largest U.S. cellphone carrier had lost 4.11% in the past month. In that same time, the Computer and Technology sector gained 1.29%, while the S&P 500 gained 1.55%.
Investors will be hoping for strength from Verizon Communications as it approaches its next earnings release, which is expected to be January 25, 2022. The company is expected to report EPS of $1.28, up 5.79% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.74 billion, down 2.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.38 per share and revenue of $133.19 billion, which would represent changes of +9.8% and +3.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Verizon Communications is currently a Zacks Rank #3 (Hold).
Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 9.33. For comparison, its industry has an average Forward P/E of 50.39, which means Verizon Communications is trading at a discount to the group.
We can also see that VZ currently has a PEG ratio of 2.87. 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. The Wireless National industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Verizon Communications (VZ) Gains As Market Dips: What You Should Know
In the latest trading session, Verizon Communications (VZ - Free Report) closed at $50.28, marking a +0.18% move from the previous day. This move outpaced the S&P 500's daily loss of 0.91%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the largest U.S. cellphone carrier had lost 4.11% in the past month. In that same time, the Computer and Technology sector gained 1.29%, while the S&P 500 gained 1.55%.
Investors will be hoping for strength from Verizon Communications as it approaches its next earnings release, which is expected to be January 25, 2022. The company is expected to report EPS of $1.28, up 5.79% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.74 billion, down 2.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.38 per share and revenue of $133.19 billion, which would represent changes of +9.8% and +3.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Verizon Communications is currently a Zacks Rank #3 (Hold).
Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 9.33. For comparison, its industry has an average Forward P/E of 50.39, which means Verizon Communications is trading at a discount to the group.
We can also see that VZ currently has a PEG ratio of 2.87. 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. The Wireless National industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.