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Verizon Communications (VZ) Dips More Than Broader Markets: What You Should Know

Verizon Communications (VZ) closed at $38.93 in the latest trading session, marking a -1.49% move from the prior day. This move lagged the S&P 500's daily loss of 1.03%. Meanwhile, the Dow lost 1.11%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 8.62% over the past month. This has was narrower than the Computer and Technology sector's loss of 13.11% and the S&P 500's loss of 10.4% in that time.

Wall Street will be looking for positivity from Verizon Communications as it approaches its next earnings report date. This is expected to be October 21, 2022. In that report, analysts expect Verizon Communications to post earnings of $1.28 per share. This would mark a year-over-year decline of 9.22%. Meanwhile, our latest consensus estimate is calling for revenue of $33.74 billion, up 2.51% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.19 per share and revenue of $136.33 billion, which would represent changes of -3.71% and +2.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Verizon Communications. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.12% lower. Verizon Communications is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Verizon Communications currently has a Forward P/E ratio of 7.62. For comparison, its industry has an average Forward P/E of 21.81, which means Verizon Communications is trading at a discount to the group.

Investors should also note that VZ has a PEG ratio of 1.84 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless National was holding an average PEG ratio of 1.89 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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