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Verizon Communications (VZ) Gains But Lags Market: What You Should Know

Zacks Equity Research

Verizon Communications (VZ) closed the most recent trading day at $59.15, moving +0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 1.04%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 3.56% over the past month. This has lagged the Computer and Technology sector's gain of 7.4% and the S&P 500's gain of 4.38% in that time.

Wall Street will be looking for positivity from VZ as it approaches its next earnings report date. This is expected to be January 30, 2020. The company is expected to report EPS of $1.15, up 2.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.43 billion, up 0.45% from the year-ago period.

Any recent changes to analyst estimates for VZ should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. VZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that VZ has a Forward P/E ratio of 11.94 right now. This represents a discount compared to its industry's average Forward P/E of 14.81.

Investors should also note that VZ has a PEG ratio of 3.71 right now. 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 3.07 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 202, putting it in the bottom 21% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research