Dividend Ahead, What Action to Expect From the Verizon Share?

Verizon Communications Inc. is a telecommunications conglomerate. The company has its headquarters in New York City and was incorporated in Delaware. The company was known as Bell Atlantic formed in 1984. Although it provides services across the globe, it is mainly active in the United States. The current CEO of the company is Hans Erik Vestberg.

The company is about to announce its third-quarter results on October 24. Analysts are bullish on the stock, expecting an increase of 16.51%. Verizon has recently introduced a prototype named THOR’s Hammer for next-generation public safety communication technology.

Vanguard Group Inc. holds the most significant number of shares of Verizon Communications Inc., and the second largest shareholder is Blackrock Inc., with 8.06% of holdings. Institutions hold Verizon’s 63.94% shares. The P/E ratio of the company is 6.63. It follows a debt/equity ratio of 186.63%. The following data is positive for the company.

The company has an EPS of 5.00 USD. It indicates that the company is profitable. It has 4.203B shares floating in the market available for trading. It leads to a market cap of $139.406B, which has declined in recent times. The beta for the VZ share is 0.67, which means that the share moves less than the market as a whole.

Verizon Communication Inc. Stock Performance Analysis

Verizon has made a profit of $21.26B for the year 2022. The company was positive by 16% on the net profit. The company made a revenue of $136.84B in the year 2022. The revenue for Verizon has advanced, but the profit margin has declined. It also indicates that the expense of the Verizon company is rising. The gross profit for the year 2022 is $60.60B following 44% of the total revenue.

Price Target of VZ Stock

The experts are aiming for a target of 35.71% on the higher side at a level of $45.00. The stock is even trading 17% below its average price and the maximum expected drawdown is up to 4.28% from the current levels.

VZ Share Technical Analysis

The VZ share price is in a declining phase, trading inside an expanding wedge pattern following a negative market structure. The VZ share is also making bearish candlestick patterns. That indicates further bearishness on the charts.

Following the downtrend, the share is trading in the death cross of the EMA’s. The share price has also declined below the 50-day and the 200-day EMAs. It shows a further preceding downtrend.

The RSI of the VZ share has been unable to hit the overbought zones and the RSI is again declining below the 50 level again. It indicates the pessimism among the traders for the VZ stock in the market.

Conclusion

The VZ share has good fundamentals and is about to give a dividend in a few days. Despite of good fundamentals, the share is trading in a downtrend following a declining wedge pattern. The EMAs and the RSI line are also acting bearish on the charts.

Therefore the share price is expected to decline to further lower levels. This decline in price can lead the VZ stock to lower support levels.

Technical Levels

Support levels for the VZ share are – $25.00 and $31.00
Resistance levels for the VZ share are – $37.50 and $40.20

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing