2024-07-26 07:38:00 ET
Summary
- The VZ stock Q2 earnings report provides another example of growth challenges.
- Combined with the selling pressure afterward, I see large odds for VZ prices to fall below a key support level of $38.5 in the next 6–12 months.
- Investors with a short timeframe should thus consider selling.
- There are other alternative ideas (such as MO and EPD) that offer similar value-yield combinations but far higher growth potential and positive market momentum.
VZ stock Q2 earnings: another quarter of slow growth
I last covered Verizon stock ( VZ ) earlier this month. The article is titled “ Why And How I Sold My Shares ” as you can see from the screenshot below. As the title suggests, the article detailed my thought process for selling my Verizon shares. More specifically, I sold my shares due to the following concerns:
There is nothing wrong with holding a sector leader trading at a reasonable P/E and yielding significantly above its historical average. However, I sold my Verizon shares recently due to consideration of compressed dividend yield and tepid growth outlook. I expect the annual growth rate to be only around 1.5% and see other income options that provide both higher yield and higher growth potential. In particular, I used covered-call options to sell my shares at an effective price of around $41, a proven strategy to help boost effective yield.
Read the full article on Seeking Alpha
For further details see:
Verizon Q2: Still Not Too Late To Sell (Technical Analysis)