Verizon Communications (VZ) Stock Sinks As Market Gains: Here's Why

In the latest close session, Verizon Communications (VZ) was down 1.06% at $50.37. The stock trailed the S&P 500, which registered a daily gain of 0.54%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 0.77%.

The largest U.S. cellphone carrier's stock has climbed by 2.11% in the past month, exceeding the Computer and Technology sector's loss of 5% and the S&P 500's loss of 4.71%.

Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. The company's earnings report is set to go public on April 27, 2026. The company is forecasted to report an EPS of $1.23, showcasing a 3.36% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $34.75 billion, reflecting a 3.79% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.91 per share and revenue of $143.27 billion, which would represent changes of +4.25% and +3.67%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Verizon Communications currently has a Zacks Rank of #3 (Hold).

Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 10.37. This represents a discount compared to its industry average Forward P/E of 12.53.

We can also see that VZ currently has a PEG ratio of 2.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Wireless National stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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