Verizon stock (NYSE: VZ) increased almost 7.5% in the last 3 months and currently trades at $59 per share. The rise was driven by the company’s increased focus on investing in 5G expansion and tie-up with Disney which has reduced the subscriber churn rate. But will the company’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely?
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last 20 years, returns for Verizon stock average only 0.2% in the next three-month (63 trading days) period after experiencing a 7.5% rise over the previous three-month (63 trading days) period. Notably, though, the stock is likely to underperform the S&P500 over the next three months (63 trading days), with an expected excess return of –1.3% compared to the S&P500.
But how would these numbers change if you are interested in holding Verizon stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test Verizon stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF Verizon stock moved by -5% over 5 trading days, THEN over the next 21 trading days, Verizon stock moves an average of 2.9 percent, which implies an excess return of 1.7 percent compared to the S&P500.
More importantly, there is 59%