Buying the “blood in the streets” can produce quick wins.
As we noted on Nov. 15, “With a yield of 6.94%, Verizon (VZ) may be too cheap to ignore.
After plummeting from about $50 to $38, the stock is incredibly oversold at support last seen in 2018. It’s also wildly oversold on RSI, MACD, and Williams’ %R. It also carries a respectable dividend yield of 6.94%. Verizon’s P/E of 8.3 is also cheap, as compared to the S&P 500, where the average stock trades with an average P/E of about 18.”
Today, the stock is back to $41.81. If it can break above this price, it could go on to refill its bearish gap around $46. Better, VZ carries a dividend yield of 6.24%, which means you can get paid to wait for VZ to recover.
Helping, VZ CEO Hans Vestberg said the company just saw positive net additions. As noted by The Wall Street Journal: Customers are coming into stores knowing what they want, said the CEO. Also, customers are paying their bills on time, regardless of what is happening elsewhere in the economy.
In addition, if Verizon can produce even better results, the stock could see higher highs, and a big return of former bulls.