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Verizon Communications (VZ) Outpaces Stock Market Gains: What You Should Know

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The latest trading session saw Verizon Communications (VZ - Free Report) ending at $44.66, denoting a +0.9% adjustment from its last day's close. This change outpaced the S&P 500's 0.25% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.56%.

The largest U.S. cellphone carrier's stock has climbed by 6.68% in the past month, exceeding the Computer and Technology sector's loss of 0.11% and the S&P 500's gain of 1.65%.

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 October 22, 2024. The company is expected to report EPS of $1.17, down 4.1% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $33.77 billion, showing a 1.31% escalation compared to the year-ago quarter.

VZ's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $135.21 billion. These results would represent year-over-year changes of -2.76% and +0.93%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Verizon Communications. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Verizon Communications currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Verizon Communications has a Forward P/E ratio of 9.67 right now. This signifies a discount in comparison to the average Forward P/E of 21.46 for its industry.

We can additionally observe that VZ currently boasts a PEG ratio of 4.03. 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. The average PEG ratio for the Wireless National industry stood at 3.83 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 156, this industry ranks in the bottom 39% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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