Stock to Sell #2 – CenturyLink (CTL)
Integrated communications company CenturyLink (CTL) is forecast by S&P to have a 1% decline in revenues in 2013 with EBITDA margins down over 40%. Although earnings are projected to increase to $2.75 this year, up from $2.67, the stock has been supported by a 6.1% dividend yield, and that could be in jeopardy.
Half of a wide downside gap that opened in February has been covered by a rally that ended in May. But the stock failed to reverse the downtrend and instead now challenges support at $34. With buying volume diminishing and a flat MACD, CTL should be sold.