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Verizon Communications (VZ) Stock Sinks As Market Gains: Here's Why
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In the latest market close, Verizon Communications (VZ - Free Report) reached $42.84, with a -0.07% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq increased by 1.46%.
The largest U.S. cellphone carrier's shares have seen an increase of 7.69% over the last month, surpassing the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 4.13%.
The investment community will be paying close attention to the earnings performance of Verizon Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.14, marking a 0.87% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $33.46 billion, indicating a 1.44% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.69 per share and revenue of $136.75 billion, indicating changes of +2.18% and +1.46%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Verizon Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% lower. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Verizon Communications has a Forward P/E ratio of 9.15 right now. For comparison, its industry has an average Forward P/E of 17.32, which means Verizon Communications is trading at a discount to the group.
Meanwhile, VZ's PEG ratio is currently 4.49. 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 average PEG ratio for the Wireless National industry stood at 3.01 at the close of the market yesterday.
The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Verizon Communications (VZ) Stock Sinks As Market Gains: Here's Why
In the latest market close, Verizon Communications (VZ - Free Report) reached $42.84, with a -0.07% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq increased by 1.46%.
The largest U.S. cellphone carrier's shares have seen an increase of 7.69% over the last month, surpassing the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 4.13%.
The investment community will be paying close attention to the earnings performance of Verizon Communications in its upcoming release. It is anticipated that the company will report an EPS of $1.14, marking a 0.87% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $33.46 billion, indicating a 1.44% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.69 per share and revenue of $136.75 billion, indicating changes of +2.18% and +1.46%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Verizon Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% lower. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Verizon Communications has a Forward P/E ratio of 9.15 right now. For comparison, its industry has an average Forward P/E of 17.32, which means Verizon Communications is trading at a discount to the group.
Meanwhile, VZ's PEG ratio is currently 4.49. 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 average PEG ratio for the Wireless National industry stood at 3.01 at the close of the market yesterday.
The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.