UKRAINE – 2021/03/15: In this photo illustration, Verizon logo seen displayed on a smartphone and a … [+]
Verizon Communications Inc. is scheduled to report earnings before Wednesday’s open. The stock hit a record high of $69.50/share in 1999 and is currently trading near $58/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
The company is expected to report a gain of $1.29/share on $32.45 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.26/share. The Whisper number is the Street’s unofficial view on earnings.
Data & Charts Courtesy MarketSmith Incorporated
A Closer Look At The Fundamentals:
The Price to Earnings (P/E) ratio is only 11 which means the company is attractively valued compared to the broader market and many of its peers. Earnings have been steady over the past four quarters as the company largely navigated the Covid-19 disruption gracefully.
A Closer Look At The Technicals:
Technically, the stock is moving sideways and continues to build a large base (a.k.a. big consolidation). The bulls want to see the stock trade above $60 and then “breakout” above resistance (current ceiling) if/when it trades above $61.95. Meanwhile, major support (current floor) is near $52/share. By definition, the stock will move sideways until either support or resistance is broken.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
