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- 1 VZ Stock dropped nearly 11.64% YTD and is close to its 52-week low.
- 2 Lead coating in network cables could result in a further drop in telecom shares price.
Verizon Communications Inc. (NYSE: VZ) and others in the telecom sector face issues concerning lead-covered network cables; VZ Stock is down by 2.12%. Telecom companies like AT&T and Verizon allegedly left over 2,000 underwater and aerial lead-covered cables in the United States. Also, the toxic contents of the cables exceed the limit set by the U.S. Environmental Agency safety recommendations.
Verizon Communications Inc. (VZ Stock) – Financial Analysis
The recent finding could have negative environmental consequences for the companies involved, primarily due to the alleged negligence in addressing hazardous waste disposal. However, companies argue that the cables in their ownership do not harm residents’ health nearby.
Wealth Enhancement Advisory Services LLC increased its stake in Verizon by 35.1% in Q1 2023. They now own 323,606 shares worth $12.58 Million. NorthCrest Asset Management LLC also bought new shares taking their portfolio worth $32.31 Million. Zullo Investment Group Inc. raised stakes in the company by 0.6% in Q1 and owns 86,329 shares worth $3.35 Million.
Nearly 63% of Verizon Communications is owned by institutional investors. A considerable amount of money is available for research and development for the company. Moreover, this holdings scenario indicates the confidence investors have in the company’s future growth.
At press time, VZ Stock is trading at $35.14 after falling 2.12%. Previous close and open were at $35.90 and $35.92, respectively. The 52-week range is from $33.72 to $51.36; this indicates that the current price is brushing the bottom of the spectrum. With an average volume of 20.11 Million shares, the market cap is $147.728 Billion. Also, Intel Corp. (NASDAQ: INTC) gained 2.79% to $32.74.
The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is $6.84, indicating that the share price is significantly undervalued. Also, the (ttm) earnings per share (EPS) is $5.14. Analysts placed a 2.36 rating for HOLD and estimated a price target at $45.44 with an upside of 29.3%.
The last earnings were reported on April 25, 2023, where the reported revenue of $32.912 Billion failed to beat the estimated value of $33.566 Billion by 1.95%. Also, the earnings per share in the report was $1.20, which surpassed the expected value of $1.194 by 0.52%. The subsequent earnings are scheduled on July 25, 2023, with revenue estimated at $33.456 Billion and earnings at $1.167.
Profit margin hiked by 15.85%; gross profit is $77.7 Billion, and operating margin swelled by 22.72%. The (ttm) revenue is reported to be $136.19 Billion, revenue per share is $32.40, and the quarterly revenue growth suffered by 1.90%. NYSE: VZ fell 5.64% in a week, 11.64% YTD, and 30.44% in a year.
Verizon Communications Inc. (VZ Stock) – Candle Exploration
NYSE: VZ has been descending since the start of 2023, with the current price slightly above the 52-week low. The recent drop is significant so price action might form a new low. However, the price might bounce to $34.28 and consolidate in the expected range.
Suppose the price breaks the trend line and sustains above R1 for a noticeable period. There is a possibility of a rally ahead. The EMA’s descending trajectory and RSI’s steep fall, currently at 38.50, indicate weaker momentum.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets & stocks comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
