PreMarket Prep Stock Of The Day: Verizon

With the looming threat of inflation and higher interest rates, higher-paying dividend stocks have come under selling pressure. One of those issues is Verizon Communications VZ, which is trading higher after its third-quarter earnings report, The corresponding price action makes it the PreMarket Prep Stock Of Day.

Six-Month Losing Streak: Verizon made its all-time high in December 2020 at $61.95, backed off to $53.83 in February and rebounded. The rally came up shy of its all-time high, nearly reaching $60 in both April and May.

Unfortunately for shareholders, Verizon has been under selling pressure and the issue is now in the midst of a six-month losing streak. On the bright side, the issue did bottom earlier this month at $50.86 and has been on the rebound.

Buyers Ahead Of The Report: Including the day it bottomed, it has been higher in four of the last five sessions, with the one outlier being a small decline on Monday ($52.27 to $51.97). Until Wednesday’s price action, the high for the rebound was $52.81 from Friday, Oct. 15.
However, the highest close for the rebound was made in Tuesday’s session at $52.35.

Mixed Q3 Earnings But Raised Guidance: Before today's open, the company reported quarterly earnings of $1.41 per share, which beat the analyst consensus estimate of $1.36 by 3.68%. The company reported quarterly sales of $32.90 billion, which missed the analyst consensus estimate of $33.28 billion by 1.14%.

More importantly, the company raised FY2021 adjusted EPS guidance from $5.25-$5.35 to $5.35-$5.40 versus a $5.31 estimate.

PreMarket Prep Take: When the issue was being covered on the show it was trading at the $53 area. Co-host Dennis Dick stated that he has no interest in owning the issue in the current market environment.

The author of this article noted the premarket high ($53.20) coincided with its Oct. 11 high ($53.29). In the case of the issue breaching that area, it would bode well for a continuation of the rally.

The full discussion on the issue from Wednesday’s show can be found here:

Price Action: After a higher open, the issue had only a $0.06 retreat to $52.72 and resumed its move higher. It easily breached the premarket high and continues to make new highs for the session. As of 11:20 a.m., $53.69 stands as the high for the day.

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

Photo: Anthony92931, via Wikimedia Commons