Stock No. 3: Verizon Communications (VZ)
Click here to VZ into the Power Gauge right now... And you’ll see the rating is listed as BEARISH.
Verizon Communications holds the No. 2 spot in what the industry calls “mobile subscription” in the U.S. with a roughly 29% market share. Cellular giant AT&T holds the No. 1 position with nearly 46% of the market under its command. You’d think this is the kind of business that thrives in any market environment. After all, when the going gets tough, consumers cut back on spending in almost every area. But these days, a wireless subscription is seen as an essential. However, Verizon is facing several challenges today... The stock’s earnings performance has been very weak. Over the past three to five years, its earnings per share was worse than expected, along with inconsistent earnings over the past five years. Telecommunications businesses in the U.S. that provide cellular service was an exciting business when the Internet was new. Now, it’s practically a utility. Companies are heavily regulated and forced to spend billions maintaining and growing to stay competitive. Further, analysts’ opinions have been more negative as the industry has been underperforming the market. So, it’s no surprise that according to the Power Gauge, VZ could soon be rated a “sell” at every major bank and hedge fund... which means this company could end up as one of the biggest losers in the coming months. If you own VZ, get out immediately. Finding bearish stocks is how I once appeared on CNBC’s Fast Money back in 2014 and warned the public about Priceline.com, just before the stock plummeted.
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