Verizon’s (VZ) crisis could lead to opportunity.
After plunging from about $37 to less than $32, the stock is trying to pivot higher. Helping, it’s also over-extended on RSI, MACD, and Williams’ %R. The last time VZ got this low was at the start of May before it ran from about $34 to $36.62. The time before that, it ran from about $35.22 to $38.66. We believe VZ may be setting up to push higher again from similar conditions. In fact, we’d like to see it closer to $38.
While the stock fell on news of potential lead contamination, it appears a good chunk of the negativity has already been priced in. Making VZ even more attractive is its current dividend yield of 8.09%. While investors wait for a recovery, they can collect a dividend.
Sincerely,
Ian Cooper
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