Verizon Communications Inc (VZ)
Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 56.25% per annum.
- VZ price at the close of May 1, 2024 was $39.20 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 5.62% per annum.
- VZ price at the close of May 1, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of VZ price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: July 17, 2023
End date: April 19, 2024
a = 1.5227
b = 0.0012
s = 0.0436
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0012) – 1
= 56.25%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0436) – 1
= 19.05%
July 17, 2023 calculations
Top border of price channel:
Exp(Y1,058)
= Exp(a + b × X1,058 + 2 × s)
= Exp(a + b × 1,537 + 2 × s)
= Exp(1.5227 + 0.0012 × 1,537 + 2 × 0.0436)
= Exp(3.4890)
= $32.75
Bottom border of price channel:
Exp(Y1,058)
= Exp(a + b × X1,058 – 2 × s)
= Exp(a + b × 1,537 – 2 × s)
= Exp(1.5227 + 0.0012 × 1,537 – 2 × 0.0436)
= Exp(3.3147)
= $27.51
April 19, 2024 calculations
Top border of price channel:
Exp(Y1,250)
= Exp(a + b × X1,250 + 2 × s)
= Exp(a + b × 1,814 + 2 × s)
= Exp(1.5227 + 0.0012 × 1,814 + 2 × 0.0436)
= Exp(3.8277)
= $45.96
Bottom border of price channel:
Exp(Y1,250)
= Exp(a + b × X1,250 – 2 × s)
= Exp(a + b × 1,814 – 2 × s)
= Exp(1.5227 + 0.0012 × 1,814 – 2 × 0.0436)
= Exp(3.6534)
= $38.60
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 56.25% per annum.
- VZ price at the close of May 1, 2024 was $39.20 and was inside the primary price channel.
Secondary Trend
Start date: January 23, 2024
End date: May 1, 2024
a = 3.9730
b = -0.0002
s = 0.0224
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -5.62%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0224) – 1
= 9.37%
January 23, 2024 calculations
Top border of price channel:
Exp(Y1,189)
= Exp(a + b × X1,189 + 2 × s)
= Exp(a + b × 1,727 + 2 × s)
= Exp(3.9730 + -0.0002 × 1,727 + 2 × 0.0224)
= Exp(3.7443)
= $42.28
Bottom border of price channel:
Exp(Y1,189)
= Exp(a + b × X1,189 – 2 × s)
= Exp(a + b × 1,727 – 2 × s)
= Exp(3.9730 + -0.0002 × 1,727 – 2 × 0.0224)
= Exp(3.6546)
= $38.65
May 1, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(3.9730 + -0.0002 × 1,826 + 2 × 0.0224)
= Exp(3.7286)
= $41.62
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(3.9730 + -0.0002 × 1,826 – 2 × 0.0224)
= Exp(3.6390)
= $38.05
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 5.62% per annum.
- VZ price at the close of May 1, 2024 was inside the secondary price channel.