• Vodafone (VOD) shows strong technical momentum, hitting new 2-year highs on Aug. 27.
• VOD maintains a 100% Barchart “Buy” opinion with robust price appreciation.
• The stock offers a 4.38% dividend yield, appealing to total return investors.
• Fundamentally, revenue is projected to rise this year, but earnings are volatile. Analyst sentiment is mixed with price targets around current levels.

Today’s Featured Stock

Valued at $29.3 billion, Vodafone (VOD) is the world’s largest international mobile communications firm. Their primary operation is in digital and analog cellular telephone networks. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. VOD checks those boxes. Since the Trend Seeker signaled a buy on Aug. 6, the stock has gained 4.6%.

VOD Price vs. Daily Moving Averages:

Barchart Technical Indicators for Vodafone

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Vodafone shares closed at a new 2-year high on Aug. 27, touching $12.06 at the end of the day.

• Vodafone has a Weighted Alpha of +31.53.
• VOD has an 100% “Buy” opinion from Barchart.
• The stock gained 20.49% over the past year.
• VOD has its Trend Seeker “Buy” signal intact.
• Vodafone is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 13 new highs and gained 5.92% in the last month.
• Relative Strength Index (RSI) is at 62.86%.
• There’s a technical support level around $11.95.

Don’t Forget the Fundamentals

• $29.3 billion market capitalization.
• 4.38% Dividend yield
• Revenue is projected to increase 7.42% this year but decrease by 0.10% next year
• Earnings are estimated to be down 9.02% this year and increase again by 40.50% next year.

Analyst and Investor Sentiment on Vodafone

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are split on VOD.

• The Wall Street analysts tracked by Barchart have issued 3 “Strong Buy,” 6 “Hold,” and 3 “Strong Sell” opinions on the stock.
• Their price targets are between $10.09-$12.20.
• Value Line gives the stock an “Above Average” rating with 3–5-year price targets between $12-$19.
• CFRA’s MarketScope Advisor give the stock a “4-Star Buy” rating with a price target of $13.
• Morningstar thinks the stock is fairly valued.
• 2,705 individual investors following the stock on Motley Fool think the stock will beat the market while 212 think it won’t.
• 59,110 investors monitor the stock on Seeking Alpha, which rates the stock “Hold.”

The Bottom Line on Vodafone

Vodafone currently has momentum and is hitting new highs. With price appreciation and a solid dividend rate, it might be attractive to total return investors.

I caution that VOD is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.