Taking a Fresh Look at Verizon Communications Inc. (VZ)

Verizon Communications Inc. (VZ) is an interesting player in the Technology space, with a focus on Telecom Services – Domestic. The stock has been active on the tape, currently trading at $44.75, down from yesterday’s close by -0.29%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. Verizon Communications Inc. (VZ) currently trades with a market capitalization of $183.33 Billion. That value represents a market adjusting for revenues that have been growing by 2.52 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For VZ, the company currently has $4.49 Billion of cash on the books, which is offset by $2.18 Billion current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $5.36 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.88 on a per share basis this quarter. Perhaps, that suggests something about why 67.58% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Verizon Communications Inc. recorded a 52-week high of $54.83. It is now trading 10.08% off that level. The stock is trading $48.09 its 50-day moving average by 3.34%. The stock carved out a 52-week low down at $42.80.

In recent action, Verizon Communications Inc. (VZ) has made a move of -6.95% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.32, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.89% with $4.08 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of VZ.

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