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Verizon Communications (VZ) Ascends While Market Falls: Some Facts to Note

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In the latest trading session, Verizon Communications (VZ - Free Report) closed at $43.74, marking a +1.27% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 1.01%.

Shares of the largest U.S. cellphone carrier witnessed a loss of 4.02% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.51% and the S&P 500's gain of 4.31%.

Investors will be eagerly watching for the performance of Verizon Communications in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 22, 2024. In that report, analysts expect Verizon Communications to post earnings of $1.18 per share. This would mark a year-over-year decline of 3.28%. At the same time, our most recent consensus estimate is projecting a revenue of $33.63 billion, reflecting a 0.87% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.59 per share and revenue of $135.06 billion, which would represent changes of -2.55% and +0.81%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. Verizon Communications is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 9.41. This signifies a discount in comparison to the average Forward P/E of 21.11 for its industry.

Investors should also note that VZ has a PEG ratio of 3.93 right now. 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. By the end of yesterday's trading, the Wireless National industry had an average PEG ratio of 3.78.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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