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Verizon Communications (VZ) closed the latest trading day at $45.38, indicating a +0.04% change from the previous session's end. This change lagged the S&P 500's 0.38% gain on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.87%.
The largest U.S. cellphone carrier's stock has climbed by 3.4% in the past month, exceeding the Computer and Technology sector's loss of 8.94% and the S&P 500's loss of 5.59%.
Analysts and investors alike will be keeping a close eye on the performance of Verizon Communications in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.15, indicating constancy compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $33.42 billion, indicating a 1.33% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.69 per share and revenue of $136.73 billion, indicating changes of +2.18% and +1.44%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Verizon Communications. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Verizon Communications currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Verizon Communications is currently trading at a Forward P/E ratio of 9.67. This expresses a discount compared to the average Forward P/E of 21.98 of its industry.
Investors should also note that VZ has a PEG ratio of 4.51 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. The Wireless National was holding an average PEG ratio of 3.24 at yesterday's closing price.