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Trading expert calls on Verizon


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by Bernie Schaeffer, editor Schaeffer's Investment Research

We select our trading positions based on a 3-part system comprising fundamental, technical and sentiment-based metrics. Using this approach, I initiated a long position in Verizon Communications (VZ).

Price action on Verizon has been strong with the equity up 10 percent year-to-date and 24 percent over the past 52 weeks.


The stock is in a long-term uptrend as it has been trading well above its rising 200-day moving average since late April, 2011. Despite its strong technical strength, skepticism towards the equity remains prevalent.

The Schaeffer’s put/call open interest ratio (SOIR) currently stands at 1.46 indicating a favor of puts versus calls. This ratio ranks in the 83rd percentile of all past SOIR ratios. An unwinding of these bearish bets could provide a tailwind toward VZ.

Finally, of the 29 analysts covering the equity, only 12 have it rated as a buy. Should any analysts decide to upgrade Verizon, this could help to drive the shares even further.

Learn more about this financial newsletter at Bernie Schaeffer's Investment Research.

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