Verizon Communications (VZ) Declines More Than Market: Some Information for Investors

Verizon Communications (VZ) ended the recent trading session at $49.55, demonstrating a -1.92% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.36% for the day. At the same time, the Dow lost 1.64%, and the tech-heavy Nasdaq lost 1.46%.

Shares of the largest U.S. cellphone carrier witnessed a gain of 3.25% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.24%, and the S&P 500's loss of 1.76%.

Market participants will be closely following the financial results of Verizon Communications in its upcoming release. The company's upcoming EPS is projected at $1.23, signifying a 3.36% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $34.75 billion, showing a 3.79% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.91 per share and a revenue of $143.23 billion, signifying shifts of +4.25% and +3.64%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Verizon Communications. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Verizon Communications is currently a Zacks Rank #3 (Hold).

In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 10.28. This indicates a discount in contrast to its industry's Forward P/E of 12.17.

Also, we should mention that VZ has a PEG ratio of 2.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Wireless National industry stood at 1.76 at the close of the market yesterday.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 19% of all industries, numbering over 250.

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.

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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Verizon Communications Inc. (VZ): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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