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Verizon Communications (VZ) Stock Moves -0.54%: What You Should Know

Zacks Equity Research
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Verizon Communications (VZ) closed the most recent trading day at $53.38, moving -0.54% from the previous trading session. The stock lagged the S&P 500's daily of 0%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.06%.

Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 2.12% over the past month. This has lagged the Computer and Technology sector's loss of 0.1% and the S&P 500's gain of 0.78% in that time.

VZ will be looking to display strength as it nears its next earnings release, which is expected to be October 23, 2018. The company is expected to report EPS of $1.18, up 20.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.43 billion, up 2.25% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.66 per share and revenue of $130.50 billion. These totals would mark changes of +24.6% and +3.54%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for VZ. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VZ is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, VZ is currently trading at a Forward P/E ratio of 11.49. For comparison, its industry has an average Forward P/E of 39.61, which means VZ is trading at a discount to the group.

It is also worth noting that VZ currently has a PEG ratio of 1.94. 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 2.3 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 62, putting it in the top 24% of all 250+ industries.

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.

To follow VZ in the coming trading sessions, be sure to utilize Zacks.com.


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