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Verizon Communications (VZ) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw Verizon Communications (VZ - Free Report) ending at $42.03, denoting a +1.4% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 1.39%. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq depreciated by 2.77%.

Coming into today, shares of the largest U.S. cellphone carrier had gained 3.42% in the past month. In that same time, the Computer and Technology sector gained 1.25%, while the S&P 500 gained 4.43%.

The investment community will be paying close attention to the earnings performance of Verizon Communications in its upcoming release. The company is slated to reveal its earnings on July 22, 2024. The company is predicted to post an EPS of $1.15, indicating a 4.96% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.03 billion, up 1.32% from the year-ago period.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $134.94 billion. These results would represent year-over-year changes of -2.76% and +0.72%, respectively.

Investors might also notice recent changes to analyst estimates for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.34% decrease. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Verizon Communications is currently exchanging hands at a Forward P/E ratio of 9.06. This expresses a discount compared to the average Forward P/E of 20.29 of its industry.

It's also important to note that VZ currently trades at a PEG ratio of 3.78. 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 currently had an average PEG ratio of 3.56 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 33% of all 250+ industries.

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.

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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