Verizon Communications (VZ) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Verizon Communications (VZ) closed at $57.21, marking a +1.02% move from the previous day. This change outpaced the S&P 500’s 0.56% gain on the day. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the largest U.S. cellphone carrier had gained 2.93% over the past month, outpacing the Computer and Technology sector’s loss of 8.65% and the S&P 500’s loss of 6.76% in that time.
VZ will be looking to display strength as it nears 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%. Our most recent consensus estimate is calling for quarterly revenue of $34.35 billion, up 1.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.69 per share and revenue of $130.98 billion, which would represent changes of +25.4% and +3.93%, respectively, from the prior year.
Any recent changes to analyst estimates for VZ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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, 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 past month, the Zacks Consensus EPS estimate has moved 0.44% higher. VZ is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, VZ is holding a Forward P/E ratio of 12.08. This represents a discount compared to its industry’s average Forward P/E of 50.45.
Also, we should mention that VZ has a PEG ratio of 2.46. 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. VZ’s industry had an average PEG ratio of 2.46 as of yesterday’s close.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 16% 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 Inc. (VZ): Free Stock Analysis Report
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