Verizon Communications (VZ) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Verizon Communications (VZ) closed at $42.34, marking a -3.99% move from the previous day. This change lagged the S&P 500's 0.79% gain on the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Coming into today, shares of the largest U.S. cellphone carrier had lost 7.61% in the past month. In that same time, the Computer and Technology sector lost 4.61%, while the S&P 500 lost 1.82%.

The investment community will be paying close attention to the earnings performance of Verizon Communications in its upcoming release. The company is slated to reveal its earnings on July 24, 2026. In that report, analysts expect Verizon Communications to post earnings of $1.27 per share. This would mark year-over-year growth of 4.1%. Meanwhile, our latest consensus estimate is calling for revenue of $35.41 billion, up 2.62% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.96 per share and revenue of $142.7 billion. These totals would mark changes of +5.31% and +3.26%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Right now, Verizon Communications possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Verizon Communications is holding a Forward P/E ratio of 8.88. For comparison, its industry has an average Forward P/E of 10.88, which means Verizon Communications is trading at a discount to the group.

One should further note that VZ currently holds a PEG ratio of 1.08. 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. The Wireless National was holding an average PEG ratio of 1.05 at yesterday's closing price.

Story Continues

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 28% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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