Verizon Communications Inc. (VZ)

VZ stock forecast: buy or sell

VZ stock outlook

  • Verizon Communications closed today at $55.44 after climbing a 1.82%.
  • From the chart point view, price is drawing an scaled downtrend since December 2019 with lower tops and lower bottoms. shares price lost a -7.98% since the downtrend started.
  • Verizon Communications Inc. offers communications, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.
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Important:
The viewpoints given in this article are personal and not recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the particular conditions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for education reasons only

VZ stock chart overview

Should I buy Verizon Communications stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is VZ stock a buy?

In the current situation of Verizon Communications there is not any eligible buy setup. This doesn't mean VZ will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Verizon Communications stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid rash decisions based on our emotions or the noise surrounding the market. Our trading system selects very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups are not intended for selling short Verizon Communications stock

As a golden rule, you should never mantain an operation that yields losses greater than those expected by the time of the buy. The timing to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Verizon Communications stock?

In the current situation of Verizon Communications there is not any eligible sell setup, so Verizon Communications stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Verizon Communications stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one analyst rating was published for Verizon Communications

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Verizon Communications ratings

Brokerage firmRating
Jul 2nd, 2020
Credit Suisse Group Neutral

Technical analysis

Verizon Communications accumulates a price drop of -7.98% since its latest top December 2019 at $60.25. Like in all downtrends, the stock oscillates drawing lower tops and bottoms. In this case, we have seen 5 consecutive lower tops

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use support and resistance levels to spot price points in the stock price action that tend to act as obstacles, containing the price of a stock to move up or down. A support level is a level where the price tends to find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue descending until meeting another support level. On the other hand, resistance levels are where the price tends to find a curb as it rises. In the same way, this means that the price is more liable to "bounce off" at this level, and if it finally breaks this level, the price will rise more easily until it approaches the next resistance

The current resistances are:

  • R1: $55.49 (0.09% above)
  • R2: $55.64 (0.36% above)
  • R3: $55.90 (0.83% above)
  • The current support levels are:

  • S1: $54.74 (-1.26% below)
  • S2: $54.72 (-1.3% below)
  • S3: $53.68 (-3.17% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. Basically, the Bollinger Bands are lines that run around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price movements to detect when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI ranges between 0 and 100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The Relative Strength Indicator (RSI) has been between the the levels of 30 and 70 for several weeks, and therefore, without this indicator really serving to help us make any decisions.

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    Earnings and financials

    1st-quarter shareholders call was hosted by VZ in late April after releasing the earnings report. VZ beat market estimates and presented a per-share earnings of %s of $1.26, that is a 3.28% improvement compared to the initial forecasts of $1.22. Reported sales were $31.6 billion compared to estimates of $32.4 billion.

    Compared to the same quarter one year ago, EPS was $1.20, so reported EPS is a gain of 5%. Looking at revenues, figures slightly changed compared to $32.1B same quarter last year.

    VZ posts quarterly financial report on Friday next week. Expected EPS for this quarter is $1.15. Earnings reporting day has an additional risk for stock traders as the data published can gap up or down the shares price with exceptionally low volume and not honouring your buy or stop-loss orders. You can find more details about the earnings call and the financial reports on the Investor Relations section of its website: http://www.verizon.com.

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