Verizon Communications is back in its support area and this is a strategic entry point.
From a fundamental viewpoint, Verizon has undeniable qualities. Its Surperformance rating underlines its profitability and the stock yield. The consensus is strongly buyer and has set an average target price displaying a +11% potential. Moreover, the P/E ratio for 2015 estimates is below the industry average.
From a technical viewpoint, the trend is neutral in the long term but more bearish in the short term. A recent downward gap and a sharp fall led the stock on its USD 45/46 support area. This zone is strengthen by the presence of the lower trend line. Furthermore, the share is in an oversold situation.
Investors can take a long position within the previously mentioned support area. In the first instance, the target price will be the USD 48.1 pivot point. In case of breakdown of the USD 45.58 support at the closing price, investors should close their positions.