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Why Verizon Communications (VZ) Dipped More Than Broader Market Today

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The latest trading session saw Verizon Communications (VZ - Free Report) ending at $43.88, denoting a -0.45% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.31%.

Heading into today, shares of the largest U.S. cellphone carrier had gained 7.91% over the past month, outpacing the Computer and Technology sector's loss of 1.17% and the S&P 500's gain of 1.57% in that time.

The upcoming earnings release of Verizon Communications will be of great interest to investors. The company's earnings report is expected on October 22, 2024. The company's upcoming EPS is projected at $1.17, signifying a 4.1% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $33.77 billion, showing a 1.31% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.58 per share and revenue of $135.21 billion, indicating changes of -2.76% and +0.93%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Verizon Communications should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. At present, Verizon Communications boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Verizon Communications is presently being traded at a Forward P/E ratio of 9.63. This represents a discount compared to its industry's average Forward P/E of 21.46.

It is also worth noting that VZ currently has a PEG ratio of 4.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Wireless National stocks are, on average, holding a PEG ratio of 3.85 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 36% 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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