Verizon Communications (VZ), Gains As The Market Sinks
Verizon Communications (VZ), which closed at $40.06 in the most recent trading session, saw a +0.23% increase over the previous day. This move outpaced the S&P 500’s daily loss of 0.76%. The Dow lost 0.76% and the Nasdaq (a tech-heavy index) lost 10.92%.
Heading into today, shares of the largest U.S. cellphone carrier had gained 5.8% over the past month, outpacing the Computer and Technology sector’s gain of 2.92% and the S&P 500’s gain of 2.18% in that time.
Wall Street will look for positive signs from Verizon Communications as it nears its next earnings report date. This date is likely to be January 24, 2023. Analysts expect Verizon Communications earnings to be $1.21 per share. This would be a decrease of 7.63% year-over-year. The latest consensus estimate for quarterly revenue is $35.06 billion. This is up 2.91% over the previous year.
Investors may also be interested in recent revisions to analyst estimates for Verizon Communications. These revisions are necessary to reflect the changing nature of near-term business trends. Therefore, positive estimates reflect optimism by analysts regarding the company’s profitability and business.
Our research shows that these revisions to estimates are directly linked to stock moves by near-team stocks. This phenomenon inspired us to create the Zacks Rank. This system considers these changes and provides a clear, practical rating model.
The Zacks Rank system (which ranges between #1 (Strong Sell or Strong Buy) and #5 (Strong Sell or Strong Buy) has a strong track record of outside-audited outperformance. #1 stocks have a yearly return of +25% on average since 1988. The Zacks Consensus EPS estimate for the month has fallen 0.44%. Verizon Communications is currently a Zacks #3 (Hold) rank.
Verizon Communications trades at a Forward PE ratio of 7.96. This discount is lower than the industry average Forward P/E ratio of 26.06.
VZ’s current PEG ratio stands at 1.92. This metric works in the same way as the P/E ratio. However, the PEG ratio also considers the stock’s expected earnings growth rate. Yesterday’s close showed that VZ’s industry had a PEG ratio of 1.14.
The Computer and Technology sector contains the Wireless National industry. The current Zacks Industry Rank for this industry is 156. This puts it in the bottom 39% among all 250+ industries.
The Zacks Industry Rank measures the strength of industry groups by measuring their average Zacks Rank. Our research has shown that the top half of industries are rated higher than the bottom 50% by a factor 2 to 1.
You can follow these stock-moving metrics on Zacks.com.
Want the most recent Zacks Investment Research recommendations? You can now download 7 Best Stocks to Watch in the Next 30 days. Click to get this free report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report