Don’t Rush to Buy Verizon Just Yet

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FILE PHOTO: The Verizon logo is seen on the 375 Pearl Street building in Manhattan, New York City

Investors may not want to chase Verizon (VZ) here.

The 6.34% yielding stock gapped higher after revenue and postpaid net additions beat Street estimates. EPS of $1.08 was in line with estimates. Revenue came in at $35.1 billion, which beat estimates for $34.6 billion. In its fourth quarter, the company saw a net addition of 449,000, which was significantly above estimates for 231,600.

For fiscal 2024, Verizon said it expects adjusted EPS of $4.50 to $4.70. Analysts expect an EPS of $4.60. In addition, “After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability,” CEO Hans Vestberg said, as quoted by Barron’s.

While that’s great news, VZ has become technically overbought on RSI, MACD, and Williams’ %R. It’s also struggling to get above July 2022 resistance at the moment. If it fails to break above that, VZ could see a near-term pullback, with a potential refill of today’s bullish gap.