Stocks In The News: VZ, T, HUM

Crista Huff
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Posted: Apr 03, 2013 12:01 AM

Welcome to John Ransom's Stocks In The News where the headline meets the trendline.

Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.

Catch us on the radio daily from 2PM-3PM ET, or at our online archive posted daily at TownhallFinance.com

Stock number one is:        

Verizon Communications (SYMBOL: VZ) and the headline says:

Vodafone Jumps on Report AT&T and Verizon Mulling Joint Bid  (Bloomberg)    

On March 6, we told you that Verizon Communications (VZ) was considering purchasing part or all of Vodafone Group (VOD).  Today Bloomberg reported that Verizon and AT&T (T) may purchase Vodafone in a joint venture.  Verizon’s goal is to own the 45% of the Verizon Wireless joint venture that’s currently owned by Vodafone, and then possibly allocate Vodafone’s international business to AT&T.

Of the three companies, Verizon is by far the most attractive investment, with strong earnings growth projected at 19% this year, a bullish chart, and a 4.2% dividend.          

Our Ransom Note trendline says: BUY VERIZON COMMUNICATIONS

VZ Chart

VZ data by YCharts

Stock number two is:        

AT&T (SYMBOL: T) and the headline says:          

AT&T Increases Dividend and Updates Share Repurchase Program (Citi Research)        

AT&T announced an increase of its quarterly dividend to 45 cents, as expected.  The new dividend yield is 4.83%.  Share buybacks for the quarter are running about 50% higher than Citi projected, at 168 million shares.  The company just authorized another repurchase of 300 million shares, and then plans to slow the pace of buybacks in 2014. We like AT&T stock for the big dividend and low volatility.  There’s some price resistance at $38, and then again at $40.  But for new money, we still prefer Verizon Communications.                   

Our Ransom Note trendline says: HOLD AT&T STOCK.

T Chart

T data by YCharts

Stock number three is:     

Humana Inc. (SYMBOL: HUM) and the headline says:    

Humana Rises as U.S. Reverses Medicare Rate Cut Decision   (Bloomberg)          

The U.S. Government has reversed a decision which would have cut Medicare payments to insurers and to doctors, instead increasing insurers’ fees, while leaving doctor pay at the previous rates.  Health insurance stocks are up on that news, with Humana Inc. leading the pack. Humana is a slow-growing company, with earnings per share projected to grow 4-6% per year for the next three years. The stock chart’s constructive, with price resistance at $80, and then again at $92.    

Our Ransom Note trendline says: HOLD HUMANA SHARES.          

HUM Chart

HUM data by YCharts

"Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis."