Verizon (VZ, $51.76) beats Q1 earnings expectations
Verizon Communications posted first quarter earnings that beat expectations. However, the telecom company lowered its full-year forecast for wireless revenues and profit growth.
The company’s adjusted non-GAAP earnings for the three months ending in March grew +3% from the year-ago quarter to $1.35 per share, largely in-line with analysts’ expectations.
Revenues rose +2.1% from last year to $33.6 billion, just ahead of analysts' estimates of $33.55 billion.
Looking ahead, Verizon expects 2022 financial year adjusted earnings to come in at the lower end of its prior forecast of a 2% to 3% growth rate. It projects revenues growth at the lower end of its 9% to 10% forecast.
VZ's Indicator enters downward trend
The Aroon Indicator for VZ entered a downward trend on May 31, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 220 similar instances where the Aroon Indicator formed such a pattern. In of the 220 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on VZ as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
VZ moved below its 50-day moving average on May 09, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for VZ crossed bearishly below the 50-day moving average on May 15, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where VZ's RSI Oscillator exited the oversold zone, of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
VZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.611) is normal, around the industry mean (5.688). P/E Ratio (6.930) is within average values for comparable stocks, (133.633). Projected Growth (PEG Ratio) (6.029) is also within normal values, averaging (10.053). Dividend Yield (0.073) settles around the average of (0.110) among similar stocks. P/S Ratio (1.100) is also within normal values, averaging (66.559).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. VZ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of wired and wireless telecommunication services
Industry WirelessTelecommunications
VZ and
Correlation & Price change
A.I.dvisor indicates that over the last year, VZ has been loosely correlated with T. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if VZ jumps, then T could also see price increases.
