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    Analytical review of the stocks of Verizon Communications Inc. as of 14.06.2016

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

    Financial performance of the company:
    Index – DJIA, S&P 500;
    Beta – 0.20;
    Capitalization – 213.22 В;
    Return on asset – 7.40%;
    Income - 17.88 B;
    P/E - 11.95;
    Average volume – 17.79 М;
    ATR – 0.81.

    Analytical review:

    • For the last month company’s shares have grown by 6%. It is expected that the rise will continue;
    • The company ranks the second on capitalization in the sector of “Telecommunication services” among the issuers traded in the American stock market;
    • According to report for Q1 of the fiscal year of 2016 company’s revenue has grown by 0.6% up to 32.17 billiard USD. Net profit of the company rose up to.43 billion USD against 4.34 billion USD for the same period a year ago;
    • Multipliers indicate possibility of the further increase in the company’s price. P/E Ratio (11.95) is significantly higher than the average P/E in the industry (21.89) and in the sector (21.89), which indicates possibility of the further rise in company’s shares. Return on equity (128.45%) is significantly above the average in the industry (24.16%);
    • Verizon is favourable for the long-term investment strategies. The company duly pays off dividends to its shareholders. Dividend yield of the company (4.30%) is much higher than of the other companies in the industry (2.35%);
    • Large investment companies and banks (RBC Capital, Barclays) predict the rise in shares up to 56 USD per share.

    Summary:

    • Company’s last report showed that company’s management is headed in the right direction. Analysis by the multipliers indicates possible increase in the company's capitalization. Large investment funds predict the rise in shares of Verizon Communications;
    • Therefore, it is likely that in the near future company’s quotes will go up.

    Trading tips for CFD of Verizon Communications Inc.

    Key levels:
    Support levels: 51.75 USD, 50.50 USD and 49.50 USD.
    Resistance levels: 53.20 USD and 54.40 USD.

    Medium-term trading, Н4
    Currently, the issuer has broken down and consolidates above resistance level of 51.75 USD. If the price maintains the zone of 51.75-52.15 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 54.00 USD, 55.50 USD and 56.50 USD with the use of trailing stop.

    Medium-term trading, Н4
    Medium-term trading, Н4

    Short-term trading, М15
    At the moment the issuer is traded between the local support and resistance levels of 52.25 - 52.80 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

    Short-term trading, М15
    Short-term trading, М15


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