Back to top

Image: Bigstock

Verizon Communications (VZ) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

The latest trading session saw Verizon Communications (VZ - Free Report) ending at $41.31, denoting a -0.41% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.

The largest U.S. cellphone carrier's stock has climbed by 2.98% in the past month, exceeding the Computer and Technology sector's gain of 1.22% and lagging the S&P 500's gain of 3.42%.

The upcoming earnings release of Verizon Communications will be of great interest to investors. The company's earnings report is expected on October 22, 2024. The company's earnings per share (EPS) are projected to be $1.17, reflecting a 4.1% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $33.77 billion, up 1.31% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.57 per share and revenue of $135.2 billion, which would represent changes of -2.97% and +0.92%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Verizon Communications. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% 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 9.07. This represents a discount compared to its industry's average Forward P/E of 22.85.

Meanwhile, VZ's PEG ratio is currently 3.78. 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 3.63 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 144, putting it in the bottom 44% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Verizon Communications Inc. (VZ) - free report >>

Published in