Verizon (VZ) Stock Poised to Resume Bullish Trend
Amid the general market wreckage of the past two-plus months, there are some stocks that are still doing just fine. One of these is Verizon (VZ) stock. Though it’s pulled back from the new 18-year high that was reached on November 20, the stock continues to trend strongly to the upside.
This strong uptrend defies the steep drops experienced by the overall market, the telecom sector, and Verizon’s main competitors, most notably, AT&T (T). Verizon’s latest earnings report on October 23 was positive and welcomed by investors. The stock gapped up sharply after the release and continued to run in subsequent weeks.
Year-to-date, VZ stock has gained nearly 9% (as of the market close on 12/7/2018). While this is relatively modest, it certainly beats the S&P 500’s slightly negative return for the year. Verizon’s dividend payout has consistently risen over time, and now stands slightly above $0.60 per share on a quarterly basis.
From a technical perspective, as mentioned, the trends for VZ on multiple time frames remain sharply bullish. Price is running well above both the 50-day and 200-day moving averages. Oscillators like Stochastics are in oversold territory after the recent market-driven pullback. Overall, the technicals are suggesting significantly further upside for Verizon’s stock.
The Technicals Rating
The Technicals gives VZ a bullish rating of 7 (on a scale of 1-10, with ’10’ being the most bullish and ‘1’ being the most bearish). Below are some of the key technicals for VZ, as well as other relevant information, that help paint a moderately bullish picture of the stock:
- Price Position vs 200-Day SMA: +11.34% (above) – BULLISH
- Position vs 50-Day SMA: +1.65% (above) – BULLISH
- Position vs 20-Day SMA: -2.39% (below) – BEARISH
- 200-Day Trend Slope (Linear Regression): BULLISH
- 100-Day Trend Slope (Linear Regression): BULLISH
- Stochastics (14,3,3) Level: Oversold – BULLISH
- RSI (14) Level: In the Middle – NEUTRAL
- Position in Bollinger Bands: Near Lower Band – BULLISH
- Sector (ETF: IYZ) Long-Term 200-Day Trend: BULLISH
- Sector (ETF: IYZ) Medium-Term 100-Day Trend: BEARISH
- Market (S&P 500) Long-Term 200-Day Trend: BULLISH
- Market (S&P 500) Medium-Term 100-Day Trend: BEARISH
- Short Interest Ratio: 1.01% – BULLISH
- Analysts’ Mean Target Price: $58.29 (slightly above current price) – NEUTRAL
- Last Earnings Reaction: Sharp Gap Up – BULLISH
Overall The Technicals Rating for VZ: TTTTTTTTTT (7 out of 10) – MODERATELY BULLISH
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Chief Market Strategist at The Technicals
With more than two decades of experience as an equity analyst for several major research firms, Don has covered individual stocks (both technically and fundamentally) across a wide variety of sectors and industries, including tech, financial, and retail. He has been quoted regularly in key financial media like Bloomberg and Reuters. Contact Don