8/18/2023 0 Comments Verizon business sign inTherefore, knowing a company's potential revenue growth is crucial.įor Verizon, the consensus sales estimate for the current quarter of $33.53 billion indicates a year-over-year change of -0.8%. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:Įven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Verizon. With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. Over the past month, the estimate has changed +0.1%. This estimate has remained unchanged over the last 30 days.įor the next fiscal year, the consensus earnings estimate of $4.69 indicates a change of +0.2% from what Verizon is expected to report a year ago. The consensus earnings estimate of $4.68 for the current fiscal year indicates a year-over-year change of -9.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%. Verizon is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of -10.7%. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. And if earnings estimates go up for a company, the fair value for its stock goes up. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. The key question now is: What could be the stock's future direction? During this period, the Zacks Wireless National industry, which Verizon falls in, has lost 8.9%. cellphone carrier have returned -7.6%, compared to the Zacks S&P 500 composite's +3.8% change. Over the past month, shares of this largest U.S. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Verizon Communications ( VZ Quick Quote VZ - Free Report) is one of the stocks most watched by visitors lately.
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