Verizon Communications (VZ) is a holding company that, acting through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. The stock is currently trading around $47.80 at the lower end of its 52 week range of $45.09-$53.66. The stock has been performing in line with the market this year rising 2.17% year to date. VZ is scheduled to report earnings before the opening bell tomorrow, and the stock is up on the day by $0.26 or 0.54% ahead of the close.

Over the past 12 quarters VZ has rallied on earnings day 6 times with an average move of 2.17%. The stock appears bearish on a chart going into the release having traded below the Ichimoku Cloud for the past few months since early June on the daily bars. Over the past 12 quarters VZ has rallied from earnings to the nearest options expiration 7 times with an average move of 2.25%. The stock looks as if it could rip to the upside in today’s session following today’s trend. Investors are expecting to see how the company will perform on earnings tomorrow due to consistent market share gain. The company has also seen strong LTE (Long Term Evolution) sales increase and the roll-out of FiOS Internet have been key for growth. Additions of tablet and Wi-Fi devices are increasing number of gadgets per customer, contributing to revenue.

The options market is currently implying a move of around $0.85 or 1.8% in VZ by this Friday’s close giving us targets of $46.95 and $48.65.

Andrew Keene

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