Quietly, one major Dow stock is making new highs, and no one is talking about it.

After being stuck in a sideways range since early 2013, Verizon is finally breaking out, hitting its highest level in two years this week.

The stock has rallied 18 percent during the last three months and is now testing a key resistance level. If it can break above its 2017 and 2018 high of $55, it will give it an important higher high, which is quite positive on a technical basis. Just above that level is the 2016 all-time high of just under $57. A break above that would give it a lot of upside momentum.

Given how strong other defensive sectors have been recently — utilities, consumer staples and health care stocks are leading the market over the last three months — this beaten down defensive name could be a compelling one going forward. Especially since its dividend yield is more than 4 percent.

Aside from a strong technical picture, Verizon looks particularly attractive given how poorly high flyers like Facebook, Twitter and Netflix have been acting lately. There's still a lot of momentum money out there, and I believe Verizon could be a good name to rotate into as we move into the historically dangerous September and October time frame.

Defensive groups have been outperforming the broader market since the spring, so those who have already been rotating toward a more defensive stance recently have not only been adding protection to their portfolios, but they're also beating they while doing it.

Bottom line: Verizon looks good from all angles.