Verizon Communications Inc. Is not such an old company. After almost 22 years of activity, VZ is now one of the world’s leading technology and communications services providers. Back in 2021, Verizon generated $133.6 billion in revenue. The company’s most known services are data providing, video, and voice services.
Can we count it as a buy-in deep opportunity?
Verizon Communications Inc. is due to publish third-quarter 2022 earnings on Friday, October 21 before the market opens. The Zacks Consensus Estimate for Verizon’s Q3 earnings is $1.28 per share, almost 9% lower than last year’s quarter. Company overall sales for Q3 are expected to rise by 2% at $33.78 billion.
Same to other reports that have been published so far, it is likely to see that Verizon also can beat the estimates, therefore what will move the share prices is the company’s guidance or forecast for the next quarter, overall, 2022 and 2023. According to the data we have so far, VZ earnings are expected to decline by 4% in 2022 whole year, but for FY23 earnings are set to rise by 2% at $5.28 per share.
What we expected is to see the largest wireless service provider in the US can give a positive outlook with a growth expectation. So, since from a fundamental point of view, we are positive about earnings and the overall telecommunication industry, according to an almost 30% decrease in the past 52 weeks, and 40% in past three years, for mid and long-term investment, it seems like an opportunity. From a technical point of view, VZ moves in a clear downtrend with $46 as the pivot point and 51 USD dollars as its first resistance. Continuing the downward trend. we can see the $33 as its strong support, breaching under $33, which can send the asset price down to $24 as well, which is so unlikely for now.