LiteForex - Analytics

    LiteForex

    807.00 7.50/10
    78% of positive reviews
    Real

    Analytical review for Verizon Communications Inc's shares on 10.03.2016

    Verizon Communications Inc., #VZ [NYSE]
    Technologies, Telecommunication services, USA

    Financial performance:

    Index –DJIA, S&P 500;
    Beta – 0.20;
    Capitalization -213.22 В
    Assets profitability - 7.40%;
    Revenue - 17.88B;
    Average volume – 17.79 М;
    P/E - 11.98;
    ATR – 0.81.


    Analytical review:

    • The Company's cost has increased by 16.7% over the past 2 months. The quotes are expected to rise further.
    • The Company has the second biggest capitalization in the telecommunication service sector among the issuers listed on the US stock market.
    • At the end of January, the Company provided a report on the 4th quarter 2015. According to the Company's press release, its net profits grew by 33.4% from 4.04 billion USD to 5.39 billion USD over the period under report. The EPS grew by over 33% from 0.99 USD to 1.32USD.
    • At the press conference, the company's management announced that over the fiscal year, the revenue had increased by 3.6% from 127.08 billion USD to 131.62 billion USD due the introduction of a tough cost saving program.
    • The Corporation has been investing quite much to diversify its business. In February, the Yahoo Inc. Company announced its plan to sell the core business (search engine, email and news sites). Verizon Communications Inc. may be a prospective buyer.
    • Currently there's high competition in the telecommunication market. To hold its market share, the company’s planning to allocate 650 million USD for payments to those clients who will terminate agreements with the major competitors (T-Mobile, AT&T, Sprint) ahead of time.

    Summary:

    • The Company's report on the 4th quarter 2015 has proved that the company's management has been working properly. Despite the pressure of the strong dollar, the company registered a substantial growth in net profit and sale volumes. The Company has been investing much to hold its market share and diversify business. The successful implemetation of investment projects will increase considerably the company's share in the telecommunication service sector.
    • Thus, we expect that the company's quotes will be rising in the nearest future.

    Trading tips for Verizon Communications Inc CFDs

    Long-term trading:
    the issuer has crossed a resistance level of 51.00 USD. Once the demand zone of 50.40-51.00 USD steadies and relevant confirming signals appear (PriceAction patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed at 50.10 USD. We recommend that prospective profits should be fixed partly at the levels of 52.20USD, 53.50USD, and 54.50 USD, with Trailing Stop applied.


    Short-term trading: the company has been fined 1.35 million USD. The Federal Communications Commission found out that Verizon Communications Inc had been violating their subscribers' privacy for promotional purposes. Once the supply zone of 1.5235-1.5275 steadies, we recommend searching for market entry points to open short positions. Risk per trade: no more than 3% of equity. Stop Order shall be placed a bit above the signal line. We recommend that prospective profits should be fixed partly at the levels of 51.95 USD, 51.55USD, and 51.00 USD, with Trailing Stop applied.



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