Verizon operates as a holding company, which provides broadband and other wireless and wire line communications services to consumer, business, government and wholesale customers.

The company shows strong fundamentals. A positive evolution on margins evinces its capacity to convert increasingly sales (+4% for 2014) in effective gains (+24% for the current year). Its undervaluation, reflected on a P/E ratio of only 13.3 times the company earnings for this fiscal year, should motivate investors for long position taking. Moreover, a great evolution in analyst’s revisions on EPS is observed during the last 12 months (+11% for 2014 and +13% for 2015). It means a large potential for the security on the stock market.

Technical patterns show how prices have been moving toward an important level. After testing twice the USD 51 resistance and the upper line of the symmetrical triangle, the share has dramatically dropped, passing through the midterm resistance at USD 48 for eventually test the long term support at USD 46. The consolidation close to this area should now allow a rebound on prices in order to reach the USD 48 resistance as first objective.

According to both technical and fundamental analysis, the timing seems perfect for taking long position on Verizon at current prices. The bullish trend should be held until reaching the USD 48.2 resistance. A stop loss will be placed at USD 45.3.