Verizone (VZ) Weekly Chart.
Technicals
Verizon Communications (VZ) bounced nicely off ascending trend line support this week and 200 weekly moving average at (1). Now testing resistance at 55.05. We need to hold above resistance before further upside can take place. Below trend line support negates this bullish outlook.
Fundamentals
Pros
Trading at 50.3% below its fair value.
Earnings are forecast to grow 3.65% per year.
Earnings grew by 24.1% over the past year.
Pays a high and reliable dividend of 4.49%
No significant price volatility in the past 3 months.
VZ is good value based on its PE ratio compared to the Telecom industry average.
VZ’s return on equity (ROE) is forecast to be high in 3 years time (26.4%)
13.4% annual earnings growth over the past 5 years.
VZ’s current net profit margins (14.6%) are higher than last year (11.9%)
Earnings have grown by 13.4% per year over the past 5 years.
VZ’S insiders have bought more shares than they have sold in the past 3 months.
Cons
Has a high level of debt.
-6.4% return over the past year.
VZ is poor value based on its price to earnings ratio.
Earnings are forecast to grow slower than the US market.
Revenue (1.4%) is forecast to grow slower than 20% per year.
VZ’s short term assets do not cover its short or long term liabilities.
VZ has a high level of physical assets or inventory.
Debt is not covered by short term assets.
Sentiment has become very optimistic, which can result in a decline in prices.
