Verizon Stock Drags On Dow After Analyst Downgrade

The analysts maintained its price target, however

Digital Content Manager
May 30, 2019 at 12:54 PM
facebook X logo linkedin

The Dow component Verizon Communications Inc (NYSE:VZ) was just served a bearish note by UBS. The analyst knocked the stock to "neutral" from "buy," saying its valuation already prices in a number of potential catalysts. The analyst maintained their price target of $59, which sits at a slight premium to current levels. VZ is down 2.1% at $56.94 at last glance -- set to end at the bottom of the Dow. 

The drop has Verizon eyeing its third straight loss, and its worst day since March. In recent weeks, the equity has spiked atop its 20-day moving average, which acted as an area of pressure in late May and early April. VZ is back below this trendline today, however. Plus, the security is dangerously close to slipping south of a recent area of support at the 200-day moving average, which happens to coincide with Verizon's year-to-date breakeven, near the $56 region. 

VZ Chart May 30

UBS' move toward the sidelines is nothing new for Verizon. Ten of the 15 analysts following VZ have given it a "hold" rating, while only five have deemed the stock a "strong buy." Plus, the stock's consensus 12-month target price sits in an area the equity visited earlier this week. 

Options traders, on the other hand, are still optimistic on the stock, with Verizon sporting a 10-day call/put volume ratio of 3.16 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 82nd percentile of its annual range. This hints at a healthier-than-usual appetite for bullish bets of late. 



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI