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Verizon Communications (VZ) Gains As Market Dips: What You Should Know
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Verizon Communications (VZ - Free Report) closed at $56.48 in the latest trading session, marking a +1.75% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.99%, while the tech-heavy Nasdaq lost 1.63%.
Heading into today, shares of the largest U.S. cellphone carrier had gained 3.58% over the past month, outpacing the Computer and Technology sector's loss of 10.48% and the S&P 500's loss of 8.1% in that time.
Investors will be hoping for strength from VZ as it approaches its next earnings release, which is expected to be January 22, 2019. On that day, VZ is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 29.07%. Meanwhile, our latest consensus estimate is calling for revenue of $34.36 billion, up 1.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.69 per share and revenue of $130.97 billion. These totals would mark changes of +25.4% and +3.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for VZ. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. VZ is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, VZ is currently trading at a Forward P/E ratio of 11.84. For comparison, its industry has an average Forward P/E of 36.84, which means VZ is trading at a discount to the group.
We can also see that VZ currently has a PEG ratio of 2.26. 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 2.29 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.
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Verizon Communications (VZ) Gains As Market Dips: What You Should Know
Verizon Communications (VZ - Free Report) closed at $56.48 in the latest trading session, marking a +1.75% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.99%, while the tech-heavy Nasdaq lost 1.63%.
Heading into today, shares of the largest U.S. cellphone carrier had gained 3.58% over the past month, outpacing the Computer and Technology sector's loss of 10.48% and the S&P 500's loss of 8.1% in that time.
Investors will be hoping for strength from VZ as it approaches its next earnings release, which is expected to be January 22, 2019. On that day, VZ is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 29.07%. Meanwhile, our latest consensus estimate is calling for revenue of $34.36 billion, up 1.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.69 per share and revenue of $130.97 billion. These totals would mark changes of +25.4% and +3.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for VZ. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. VZ is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, VZ is currently trading at a Forward P/E ratio of 11.84. For comparison, its industry has an average Forward P/E of 36.84, which means VZ is trading at a discount to the group.
We can also see that VZ currently has a PEG ratio of 2.26. 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 2.29 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.